What Statement Best Describes the Production and Allocation of Resources

question 18

Multiple Choice

What statement best describes the production and allocation of resources after the United States entered World War II?

• A) Government spending as a percentage of GNP during this period never exceeded the maximum level at the height of the Depression under Roosevelt's New Deal policies.
• B) Production shifted out closer to the production possibilities frontier, primarily as a result of technical change.
• C) Production shifted out toward the production possibilities frontier, primarily as a result of underutilized resources being utilized.
• D) Greater production of goods to support the war involved nominally higher incidents of disabling injuries in the workplace, yet not increases in the rates of disabling injuries.

---

Definitions:

Budgeted Overhead

An estimate of the total indirect costs that are expected to be incurred during a specified period in the production process.

Actual Production

The total quantity of goods or services produced by a company during a specific period, measured to assess operational efficiency and effectiveness.

Direct Labor Cost

The total cost of all labor that is directly involved in the production of goods or services.

Manufacturing Overhead

The indirect factory-related costs that are incurred when producing a product.