Total Surplus Can Be Increased By

question 80

Multiple Choice

Total surplus can be increased by:

• A) policies that help people do business more efficiently.
• B) technologies that help people share more and better information.
• C) increasing the availability of accurate information.
• D) All of these can increase total surplus.

Calculate and apply factory overhead rates.

Record and understand the significance of underapplied or overapplied overhead.

Prepare journal entries for the issuance of materials, application of labor, and application of factory overhead.

Calculate the cost per unit and total cost of jobs in a job order costing system.

---

Definitions:

Ceteris Paribus Assumption

The assumption used in economics that all other variables are held constant when analyzing the effect of one variable on another.

Behavioral Assumption

An assumption that describes the expected behavior of economic decision makers, what motivates them.

Ceteris Paribus Assumption

A Latin phrase meaning "all other things being equal", used in economics to isolate the effect of one variable change by holding other relevant factors constant.

Other-Things-Constant Assumption

An assumption in economics that all other variables remain unchanged or constant except those under immediate consideration.