An Economist Is Most Capable of Determining

question 124

Multiple Choice

An economist is most capable of determining

• A) how worker productivity affects the output of an economy.
• B) psychological factors that contribute to worker productivity.
• C) interior paint colors that boost business revenue.
• D) which individuals are allowed to make decisions.
• E) why some consumers prefer emeralds over diamonds.

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Definitions:

Machine-Hours

An indicator of manufacturing productivity that calculates the total hours machinery is active in the production cycle.

Manufacturing Overhead

Refers to all the costs associated with the manufacturing process except for direct materials and direct labor.

Variable Manufacturing Overhead

Variable manufacturing overhead includes expenses that fluctuate with production levels, such as materials and utility costs directly associated with manufacturing.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance for manufacturing facilities.