"Government Should Not Use Price Controls" Is an Example Of

question 34

Multiple Choice

"Government should not use price controls" is an example of:

• A) positive economics.
• B) normative economics.
• C) the art of economics.
• D) Marshallian economics.

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Definitions:

Inspection Cost

Expenses incurred to ensure products meet quality standards, including costs of labor, equipment, and facilities used in inspection.

Overhead Cost

Expenses related to the day-to-day running of a business that cannot be directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Machine Hours

This is a measure of the amount of time a machine is operated and is often used in the allocation of manufacturing overhead to products based on usage.

High-low Method

A method employed in managerial accounting that estimates variable and fixed costs by analyzing the most and least active periods.