Which of the Following Is Not a Feature of Laissez-Faire

question 108

Multiple Choice

Which of the following is not a feature of laissez-faire capitalism?

• A) competition
• B) guaranteed income
• C) private ownership of wealth
• D) economic freedom
• E) limited role of government

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Definitions:

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.