Figure 13-2 -Refer to Figure 13-2. If Real GDP Is $4 Trillion

question 132

Multiple Choice

Figure 13-2
-Refer to Figure 13-2. If real GDP is $4 trillion, consumption equals

• A) 0.75 trillion.
• B) 1 trillion.
• C) 3 trillion.
• D) 4 trillion.

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Definitions:

Direct Labor Cost

The compensation given to employees directly engaged in manufacturing products or delivering services.

Manufacturing Overhead Cost

Indirect costs related to manufacturing that are not directly tied to a specific product, including utilities and maintenance of equipment.

Overhead Cost

Represents the expenses not directly tied to the production of goods or services, including rent, utilities, and administrative costs.

Direct Labor Cost

The cost of wages and benefits for employees who are directly involved in manufacturing a product or delivering a service.