If Consumers Attempt to Buy More Goods Than the Economy

question 126

Multiple Choice

If consumers attempt to buy more goods than the economy can produce,the result is

• A)Unemployment.
• B)Demand-pull inflation.
• C)Cost-push inflation.
• D)The wealth effect.

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Definitions:

Standard Materials Quantity

The predetermined amount of materials expected to be used in the production of a single unit or a batch of product, under normal conditions.

Direct Labor Hour

A measure of the labor time specifically involved in the direct manufacture of products, not including indirect tasks.

Direct Labor Rate Variance

It's a measure used in cost accounting to determine the difference between the actual labor cost per hour and the expected (or standard) cost per hour.

Direct Labor Time Variance

The difference between the actual time taken to manufacture a product and the standard time expected, multiplied by the wage rate, indicating inefficiency or efficiency in production.