Capital, Labor, and Natural Resources Combine to Produce Goods and Services

question 20

Multiple Choice

Capital, labor, and natural resources combine to produce goods and services. Which of the following will not lead to an increase in the ability of an economy to produce goods and services?

• A) increased training for workers
• B) establishing a more productive technology
• C) new government restrictions on which technologies may be used to produce goods and services
• D) discovery of new oil reserves

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Definitions:

Total Factory Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard overhead costs previously estimated for a production process.

Standard Costs

Pre-determined or estimated costs of manufacturing a product or providing a service, used as targets or benchmarks.

Variances

Differences between planned financial outcomes and the actual results, used for budgetary control and operational analysis.

Widgets

Widgets typically refer to a generic term for any unspecified device or product, often used in examples or explanations of business concepts.