When Collective Decision Making Is Utilized to Resolve Economic Questions

question 200

Multiple Choice

When collective decision making is utilized to resolve economic questions regarding the allocation of resources,

• A) the role of markets will be replaced by political decision making.
• B) centralized decision making in all areas is inevitable.
• C) the preferences of individuals are of no importance.
• D) economic efficiency will be assured.

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Definitions:

Flexible Budgets

Budgets designed to adapt or modify based on alterations in activity levels or volume.

Variable Overhead Estimates

Predicted costs that fluctuate with the level of output, such as utilities and materials, which do not have a fixed rate.

Standard Input Measures

Metrics used to set benchmarks for the amount of resources (materials, labor, etc.) required for a standard unit of production or service delivery, facilitating efficiency analysis.

Units of Output

The measure of production or work accomplished, such as the number of units produced in a manufacturing process.