Related to the Economics in Practice on Page 26: How

question 201

Multiple Choice

Related to the Economics in Practice on page 26: How did the introduction of the microwave oven in 1960 affect the market for frozen food?

• A) It encouraged people to leave the work force by making cooking easier and less time-consuming.
• B) It reduced the opportunity cost of eating frozen food by decreasing the amount of time required to prepare frozen meals.
• C) It increased the financial cost of alternative methods of food preparation, such as conventional ovens.
• D) It made frozen foods more appealing by increasing the variety of meals that could be frozen and reheated.

---

Definitions:

Direct Material

Direct material refers to the raw materials that can be directly attributed to the production of goods, essentially part of the finished product.

Lumber

Refers to processed wood used for construction or other purposes.

Steel

A hard, strong alloy mainly consisting of iron and carbon, widely used in construction and manufacturing.

Period Cost

Accounting costs directly expensed in the period incurred, distinct from costs associated with production which are capitalized.