The Major Virtues of the Market System Include All of the Following

question 56

Multiple Choice

The major virtues of the market system include all of the following, except

• A) it promotes an efficient allocation of resources.
• B) it leads to equality in the distribution of income.
• C) it provides incentives for greater production and higher incomes.
• D) it emphasizes the freedom to pursue self-interest.

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Definitions:

Factory Overhead

Indirect costs incurred during the manufacturing process, not directly tied to the production of goods, such as utilities or salaries for management.

Actual Factory Overhead

The total of all indirect manufacturing costs that have been incurred during a specific period.

General Ledger Account

The main accounting record of a company that uses double-entry bookkeeping, containing all the financial transactions.

Time Ticket

A document used to record the amount of time an employee spends on various tasks, often used for billing clients or calculating labor costs in manufacturing.