Joe Has a Full-Time Construction Job and Also Does Odd

question 32

Multiple Choice

Joe has a full-time construction job and also does odd jobs for people on the weekends.You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence.Does the payment to Joe count toward the value of gross domestic product (GDP) ?

• A) Yes,the fence increases the value of your house.
• B) Yes,all income earned counts in GDP.
• C) No,his is a nonmarket activity.
• D) No,this income is not likely to be reported to the government.
• E) No,this is a leisure activity.

Calculate total manufacturing costs, including direct materials, direct labor, and manufacturing overhead.

Distinguish between raw materials, work-in-process, and finished goods inventory.

Explain the role of manufacturing overhead and its components.

Understand how to calculate cost of goods sold (COGS) from manufacturing data.

---

Definitions:

Subjective Norms

Beliefs about what others think one should do, which can influence an individual's behavior.

Fast-food Restaurants

Fast-food restaurants are establishments that serve prepared food quickly and efficiently, typically part of a chain with a standardized menu.

Terror Management Theory

A psychological theory suggesting that awareness of one’s own mortality drives behavior, particularly those that uphold cultural values and self-esteem.

Conspicuous Consumption

The purchase of goods or services for the purpose of displaying wealth or status rather than for practical reasons.