Refer to the Circular Flow Model of the Economy

question 39

Multiple Choice

Refer to the circular flow model of the economy.In the diagram flow (3) represents:

• A)wage, rent, interest, and profit income.
• B)land, labour, capital, and entrepreneurial ability.
• C)goods and services.
• D)consumer expenditures.

Analyze the factors influencing changes in social behaviors, such as littering, through interventions beyond financial incentives.

Comprehend the rationale behind actions involving fairness in various contexts, including charitable giving and tipping.

Grasp the importance of historical data in estimating returns on equity investments.

Recognize common biases in consumer decision-making and the role of anchoring.

---

Definitions:

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are expected to occur relative to a specific activity or cost driver.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is the difference between the actual and budgeted variable overhead cost based on the efficient utilization of resources.

Direct Labor-hours

The amount of labor hours that can be directly attributed to the production process, serving as a basis for allocating manufacturing overhead costs in some costing systems.