Which of the Following Is NOT True of a Completely

question 1

Multiple Choice

Which of the following is NOT true of a completely free- market economy?

• A) Firms' production methods are regulated.
• B) Workers choose where to work and how much to work.
• C) Millions of individual economic decisions determine economic outcomes.
• D) The interaction between buyers and sellers answers the basic economic questions of what gets produced, how it gets produced, and who gets it.

---

Definitions:

Direct Labor-Hours

The total hours of labor directly involved in the production of goods, a key factor in calculating labor costs.

Estimated Total Overhead

The projected total of all indirect production costs, including but not limited to utilities, rent, and administrative expenses.

Assembly Department

A section within a manufacturing facility where components are assembled into final products or where significant assembly work is performed.

Total Overhead Applied

The total amount of overhead costs allocated to products or services based on a predetermined overhead rate.