An Economy That Is Self-Contained and Does Not Engage in Any

question 107

Multiple Choice

An economy that is self-contained and does not engage in any trade with outsiders is a(n) :

• A)autarky.
• B)oligopoly.
• C)oligarchy.
• D)monarchy.

---

Definitions:

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing of a product and are easily traceable to the product being manufactured.

Work In Process Inventory

The cost of unfinished goods in the production process, including labor, raw materials, and overhead.

Conversion Costs

The combined costs of direct labor and factory overhead incurred to convert raw materials into finished goods.

Factory Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as maintenance, utilities, and salaries of supervisory personnel.