One of the Main Tools Used by Economists to Measure

question 5

Multiple Choice

One of the main tools used by economists to measure the actual distribution of income is

• A)the Lorenz curve
• B)the Golden Rule
• C)the MR = MC rule
• D)the MRP = MRC rule
• E)the capital / labor ratio

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Definitions:

Equivalent Units

A concept in cost accounting used to convert partially completed goods into an equivalent number of fully completed units for inventory valuation.

Direct Materials

The raw materials used in the manufacturing process that are directly incorporated into the finished product.

Units Started and Completed

The quantity of product units that undergo the entire manufacturing process, from start to finish, within a given period.

Current Month

The current month refers to the ongoing month or the present period under consideration or review.