Which of the Following Is True

question 87

Multiple Choice

Which of the following is true?

• A)When resources are allocated on the basis of personal characteristics,all people who are willing and able to pay the price get the resource.
• B)When the range of activities to be monitored is large and complex,a command system allocates resources better than a market price.
• C)When a market price allocates resources,some people who are willing and able to pay that price don't get the resource.
• D)Force provides the state with an effective method of transferring wealth from the rich to the poor.
• E)When resources are allocated by force,people with the "right" characteristics get the resources.

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Definitions:

Work in Process Inventory

Goods that are in various stages of the production process but are not yet completed.

Raw Materials Inventory

The total value of raw materials currently held by a company, which are to be used in manufacturing or production processes.

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees, often a significant component of production expenses.

Direct Labor

The labor cost directly attributable to the production of goods or services, distinguishable from indirect labor costs like maintenance.