Studies by Economists Suggest That

question 43

Multiple Choice

Studies by economists suggest that

• A)households do not increase their saving as the government's dissaving increases.
• B)households increase their saving, but not by the full amount of an increase in government dissaving.
• C)households also increase their dissaving when the government increases its dissaving.
• D)households also increase their saving when the government increases its saving.

---

Definitions:

Direct Materials

Essential parts that directly contribute to the fabrication of particular merchandise or services.

Product Cost

The total amount incurred to manufacture a product, including direct materials, labor, and overhead expenses.

Machine Operator's Wages

Compensation paid to employees who operate machinery as part of the production process, typically considered direct labor costs.

Direct Labor

The work of factory employees that can be directly associated with converting raw materials into finished goods.