In a Market Economy

question 18

Multiple Choice

In a market economy,

• A) there is a fixed economic pie to be divided among individuals.
• B) differences in incomes provide individuals with an incentive to supply resources that are highly valued by others.
• C) a central distributing agency carves up the economic pie and allocates slices to individuals.
• D) both a and b above are true.

Analyze supply chain strategies of different companies and their impact on supply chain performance.

Describe the flow of information, products, and finances in a supply chain.

Identify operational and strategic decisions within a supply chain context.

Identify and name major muscles in the human body.

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Definitions:

Direct Labor-Hours

The number of hours spent by workers directly involved in the manufacturing of a product or delivery of a service.

Manufacturing Overhead

The indirect production costs that are not directly associated with the manufacturing of products, such as utilities and rent for the manufacturing facility.

Predetermined Overhead Rate

A computed rate used for applying overhead costs to products or job orders, calculated before the period begins based on estimated costs.

Machine-Hours

The total hours that machinery is operating during a specific period, often used for allocating manufacturing overhead costs.