Capitalism Is an Economic System in Which

question 29

Multiple Choice

Capitalism is an economic system in which

• A)the means of production are largely in private hands,and the main incentive for economic activity is the accumulation of profits.
• B)all property is communally owned and no social distinctions are made on the basis of people's ability to produce.
• C)the means of production and distribution are collectively owned.
• D)all property is owned individually,and no social distinctions are made on the basis of people's ability to produce.

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Definitions:

Weighted Average Method

The weighted average method is an accounting technique used to calculate the cost of goods sold and ending inventory by assigning an average cost to each item based on the weight of its cost in the total inventory.

Predetermined Rate

A rate set in advance for calculating costs, often used in budgeting and estimating manufacturing costs.

Steam-Bending Process

A woodworking technique where steam is used to soften wood, making it pliable for shaping into curves.

Conversion Costs

Refers to expenditures (labor costs and overhead) related to the transformation of materials into finished products.