Unemployment And/or Productive Inefficiencies

question 211

Multiple Choice

Unemployment and/or productive inefficiencies:

• A)cause the production possibilities curve to shift outward.
• B)can exist at any point on a production possibilities curve.
• C)can both be illustrated by a point outside the production possibilities curve.
• D)can both be illustrated by a point inside the production possibilities curve.

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Definitions:

Predetermined Overhead Rate

A rate calculated before the period begins by dividing the estimated total overhead costs by an estimated allocation base, used to assign overhead costs to products or job orders.

Manufacturing Cost

The total expense incurred in the process of producing goods, including raw materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to specific products or job orders based on a preselected activity base.

Labor-Hours

The total hours worked by employees, usually in the context of manufacturing or production, that can be used to allocate costs or measure productivity.