The Study of How the Allocation of Resources Affects Economic

question 7

Multiple Choice

The study of how the allocation of resources affects economic well-being is called

• A)consumer economics.
• B)macroeconomics.
• C)willingness-to-pay economics.
• D)welfare economics.

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Definitions:

Direct Labor

The wages paid to workers directly involved in the production of goods or services.

Overhead

All ongoing business expenses not directly attributable to creating a product or service.

Incremental Cost

The additional cost associated with manufacturing one more unit of production.

Direct Materials

Raw materials directly traced and assigned to the cost of producing goods or services.