Which of the Following Is True

question 104

Multiple Choice

Which of the following is true?

• A) The incentives to engage in rent-seeking activities increase with the ease with which the political process can provide personal gain at the expense of others.
• B) The amount of resources devoted toward rent seeking generally has no impact on the economic prosperity of a nation.
• C) Income transfers directed toward the poor constitute about half of all income transfers in the United States.
• D) All of the above are correct.

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Definitions:

Sales Variance

Captures the effect of quantity sold holding the mix of products sold constant.

Overhead Variances

The difference between actual overhead costs incurred and the standard or budgeted overhead costs.

Variable Overhead

The indirect expenses that fluctuate with the level of production activity, such as utilities for the manufacturing plant.

Overhead Absorption Rate

Budgeted overhead divided by budgeted volume. Also called overhead application rate.