Advocates of Discretionary Policy Make Which of the Following Criticisms

question 118

Multiple Choice

Advocates of discretionary policy make which of the following criticisms of the economy's "self-correcting" mechanism?

• A)It is slow.
• B)It is not very reliable.
• C)It works only when supplemented by automatic stabilizers.
• D)All of these responses are correct.
• E)Options a and b only are correct.

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Definitions:

Labor Rate Variance

A metric used to measure the difference between the actual rate paid to workers and the expected (or standard) rate.

Direct Labor

The labor cost attributed directly to the production of goods or services.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units of a product, calculated for managerial accounting purposes.

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.