Which of the Following Is NOT Part of the First

question 175

Multiple Choice

Which of the following is NOT part of the first big economic question?

• A) For whom are goods and services produced?
• B) What goods and services are produced?
• C) Why do incentives affect only marginal costs?
• D) How are goods and services produced?

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Definitions:

Labor-Intensive Department

A department within a company that relies more on human labor than on machinery or automation to produce goods or provide services.

Capital-Intensive Department

A division within a company that requires a large investment in capital assets relative to its labor cost.

Single Plantwide Factory Overhead Rate

A method of allocating total factory overhead to products based on a single rate, often using total direct labor hours or machine hours.

Plantwide Factory Overhead Rate

A single overhead absorption rate calculated by dividing total factory overheads by total machine hours or labor hours, applied uniformly across all products and services.