Which Statement Is TRUE

question 27

Multiple Choice

Which statement is TRUE?

• A) In the past century, the population of the United States has grown faster than output.
• B) Long-run growth models and business cycle models are the same.
• C) Since World War II, the economy of Argentina has grown faster than the economy of Canada.
• D) The level of saving is important for long-run growth.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard prices.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Fixed Manufacturing Overhead

Costs related to manufacturing that do not change with the level of production, such as rent, salaries, and utilities.

Direct Labor

Labor that is directly involved in the creation or production of goods, distinguishable from indirect labor such as administrative work.