Good Institutions

question 210

Multiple Choice

Good institutions:

• A) reward those who create value and increase efficiency with higher profits.
• B) distribute wealth evenly across the economy.
• C) result in growth rates approximately equal to those in countries with poor institutions.
• D) matter only if the country has a large amount of both physical and human capital.

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Definitions:

Work in Process Inventory

Goods that are in the production process but are not yet complete, representing a stage between raw materials and finished goods inventory.

Direct Materials

Ingredients essential to the production of a product, which can be directly linked to its manufacture and are integral to the completed item.

Time Tickets

Documents used to record the amount of time an employee spends on various tasks, which is useful for cost accounting purposes.

Materials Requisitions

Documents used to request and track the transfer of materials from inventory for production or other uses within a company.