Economists Use the Word Equality to Describe a Situation in Which

question 43

Multiple Choice

Economists use the word equality to describe a situation in which

• A)each member of society has the same income.
• B)each member of society has access to abundant quantities of goods and services,regardless of his or her income.
• C)society is getting the maximum benefits from its scarce resources.
• D)society's resources are used efficiently.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.

Manufacturing Costs

The total expense involved in manufacturing a product, including direct materials, direct labor, and overhead costs.

Direct Materials

The raw materials directly used in the production of a product, easily traceable to the finished good.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing costs in the cost of a product.