Grades Are Low in Your Biology Class,so Your Professor Offers

question 25

Multiple Choice

Grades are low in your biology class,so your professor offers an optional 10-point extra-credit assignment.Most of the students turn in the assignment.Which economic prinicple does this statement BEST represent?

• A)The true cost of something is its opportunity cost.
• B)"How much" is a decision at the margin.
• C)People usually respond to incentives,exploiting opportunities to make themselves better off.
• D)There are gains from trade.

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Definitions:

Machine-Hours

A measure of the number of hours a machine is operated in a given period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on a cost driver, calculated before the period begins.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for managers.

Predetermined Overhead Rates

An estimated rate used in cost accounting to allocate overhead costs to products or services based on a set formula.