If Businesses Are Producing at Capacity, and the Nation Is

question 39

Multiple Choice

If businesses are producing at capacity, and the nation is experiencing almost full employment (a very low rate of unemployment-less than 2%) , the Fed may decide to

• A) lower interest rates.
• B) raise taxes.
• C) lower taxes.
• D) increase interest rates.

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Definitions:

Raw Materials Inventory

The goods and materials that a company holds that are intended for use in the production process.

Raw Materials Purchased

The total cost of raw materials bought by a company for use in production during a specific time period.

Job Order Cost Sheet

A record maintained for each job in a job order costing system, detailing the materials, labor, and overhead costs incurred.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.