Which of the Following Would NOT Be a Cost That

question 108

Multiple Choice

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

• A)the wood and upholstery materials that are in the final piece
• B)the depreciation paid on factory equipment t
• C)he labor of the worker assembling the piece of furniture
• D)the labor of the woodworker who finishes the wood of the piece

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Definitions:

Production Possibilities

The different combinations of goods and services that an economy can produce given its available resources and technology, typically represented by a curve.

International Trade

The exchange of goods and services between countries, allowing economies to grow by specializing in the production of goods they can produce most efficiently.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price level in a given period.

World Price

The global market price of a commodity, determined by worldwide supply and demand.