On a Graph Showing Real National Income on the Vertical

question 9

Multiple Choice

On a graph showing real national income on the vertical axis and time on the horizontal axis, the fluctuations of real national income around the trend- line would indicate the

• A)distribution of income.
• B)inflation rate.
• C)business cycle.
• D)unemployment rate.
• E)path of potential output.

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Definitions:

Standard Cost Per Bag

A pre-determined cost estimate for producing or purchasing a single unit of product, in this context, a bag.

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Direct Labour

The workforce directly involved in the manufacturing of goods or provision of services, whose wages are directly associated with specific products or services.

Labour Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on hours worked and the rates paid.