Engel’s law is an observation in economics stating that as income rises, the proportion of income spent on food falls, even if actual expenditure on food rises. In other words, the income elasticity of demand of food is between 0 and 1. Engel’s Law doesn’t imply that food spending remains unchanged as income increases: It suggests that consumers increase their expenditures for food products (in % terms) less than their increases in income.

Correct Option: D

Engel’s law is an observation in economics stating that as income rises, the proportion of income spent on food falls, even if actual expenditure on food rises. In other words, the income elasticity of demand of food is between 0 and 1. Engel’s Law doesn’t imply that food spending remains unchanged as income increases: It suggests that consumers increase their expenditures for food products (in % terms) less than their increases in income.

In economics and business decision-making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred or changed if an action is taken. The sunk cost is distinct from economic loss. Sunk costs may cause cost overrun.

Correct Option: C

In economics and business decision-making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred or changed if an action is taken. The sunk cost is distinct from economic loss. Sunk costs may cause cost overrun.

Prime Cost refers to a business’s expenses for the materials and labor it uses in production. Prime cost is a way of measuring the total cost of the production inputs needed to create a given output. By analyzing its prime costs, a company can determine how much it must charge for its finished product in order to make a profit. Variable costs are expenses that change in proportion to the activity of a business. Variable cost is the sum of marginal costs over all units produced. It can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost. Prime Cost = Direct Materials + Direct Labour+ Direct expenses. This comes to Variable cost + Administrative cost. Administrative cost is the cost associated with the general management of organization in accounting.

Correct Option: A

Prime Cost refers to a business’s expenses for the materials and labor it uses in production. Prime cost is a way of measuring the total cost of the production inputs needed to create a given output. By analyzing its prime costs, a company can determine how much it must charge for its finished product in order to make a profit. Variable costs are expenses that change in proportion to the activity of a business. Variable cost is the sum of marginal costs over all units produced. It can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost. Prime Cost = Direct Materials + Direct Labour+ Direct expenses. This comes to Variable cost + Administrative cost. Administrative cost is the cost associated with the general management of organization in accounting.

The term ‘supply of labour’ refers to the number of hours of a given type of labour which will be offered for hire at different wage rates. Usually, it is found that higher the wage rates larger is the supply indicating a direct relationship that exists between the wage rate i.e. the price of labour and labour hours supplied. The supply of labour is very much affected by the work leisure ratio which in turn is affected by the changes in wage rates. The supply of labour in an economy depends on various economic and non-economic factors such as: population, sex composition, age composition of the population, willingness to work, wage rates, migration and immigration, working hours, social attitude and standard, legal barriers, education and training, employer’s attitude, labour supply and leisure, efficiency of workers, etc. In economics, the marginal product of labor (MPL) is the change in output that results from employing an added unit of labor. It has nothing to do with the supply of labour.

Correct Option: C

The term ‘supply of labour’ refers to the number of hours of a given type of labour which will be offered for hire at different wage rates. Usually, it is found that higher the wage rates larger is the supply indicating a direct relationship that exists between the wage rate i.e. the price of labour and labour hours supplied. The supply of labour is very much affected by the work leisure ratio which in turn is affected by the changes in wage rates. The supply of labour in an economy depends on various economic and non-economic factors such as: population, sex composition, age composition of the population, willingness to work, wage rates, migration and immigration, working hours, social attitude and standard, legal barriers, education and training, employer’s attitude, labour supply and leisure, efficiency of workers, etc. In economics, the marginal product of labor (MPL) is the change in output that results from employing an added unit of labor. It has nothing to do with the supply of labour.

Free goods are what is needed by the society and is available without limits. The free good is a term used in economics to describe a good that is not scarce. A free good is available in as great a quantity as desired with zero opportunity cost to society.

Correct Option: C

Free goods are what is needed by the society and is available without limits. The free good is a term used in economics to describe a good that is not scarce. A free good is available in as great a quantity as desired with zero opportunity cost to society.