Using More Highly Skilled Direct Labourers Might Affect Which of the Following

question 64

Multiple Choice

Using more highly skilled direct labourers might affect which of the following variances?

• A)materials usage variance
• B)labour efficiency variance
• C)variable manufacturing overhead efficiency variance
• D)all of the above

Understand the concept and calculation of Gross Domestic Product (GDP) and its significance in measuring economic activity.

Identify and explain the components that contribute to or are excluded from GDP.

Recognize the limitations and criticisms associated with GDP as a measurement of economic welfare and social well-being.

Understand the concepts of nominal and real GDP and the significance of base years in price indices.

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Definitions:

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the real yield on an investment.

Inflation

A rise in the general level of prices in an economy; an increase in an economy’s price level.

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds in the financial markets.

Allocation Of Capital

The process of distributing financial resources among different projects or sectors within an economy or organization to maximize returns.