The Total Output of an Economy Can Be Measured as The

question 16

Multiple Choice

The total output of an economy can be measured as the:

• A) net value of the goods and services produced by ?rms in an economy.
• B) value of household earnings spent outside the economy.
• C) net value of corporate and income taxes paid.
• D) value of non-monetary transactions within the economy.

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Definitions:

Rate Variance

The difference between the actual rate and a predetermined or standard rate.

Direct Labor-Hours

The aggregate of direct labor hours required for manufacturing a good or rendering a service.

Variable Overhead

Indirect production costs that vary with the level of output, including supplies and utilities necessary for production but not directly tied to specific products.

Efficiency Variance

The difference between the actual amount of resources used in production and the amount that should have been used, reflecting efficiency in resource usage.