The Use of Money Contributes to Economic Efficiency Because

question 81

Multiple Choice

The use of money contributes to economic efficiency because

• A)governmental direction of the production and distribution of output can be avoided by using money.
• B)roundabout production could not occur without the availability of money.
• C)it is necessary for the creation of capital goods.
• D)it promotes specialization by overcoming the problems with barter.

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Definitions:

Direct Labor

Expenses of employees directly involved in the production of goods or services, such as wages for assembly line workers.

Per-unit Cost

The cost associated with producing or acquiring a single unit of product, including both fixed and variable costs.

Operating Income

Operating Income is a measure of a company's profit that comes from its regular business operations, excluding non-operating income and expenses.

Units Sold

The total number of units of a product sold within a specific period, reflecting the volume of business activity.