In Terms of the Supply Curve,the Consequence of Allowing People

question 148

Multiple Choice

In terms of the supply curve,the consequence of allowing people to sell their body organs is that the supply

• A) of organs becomes more inelastic.
• B) of organs becomes more elastic.
• C) of organs decreases.
• D) curve decreases but then increases.
• E) curve becomes backward bending.

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Definitions:

Factory Overhead Rate

A calculation used to assign manufacturing overhead costs to individual units of production, based on a certain activity base.

Flexible Budget

A budget that adjusts to changes in the volume of activity, allowing for better comparison with actual costs.

Direct Labour Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process of a product.

Static Budget

A budget that is based on a fixed set of assumptions and does not change or adapt to variations in business activity levels.