The Greater the Number of Different Goods Available in an Economy,the

question 42

Multiple Choice

The greater the number of different goods available in an economy,the:

• A)less likely it is that a double coincidence of wants will exist,and the less likely it is that monetary exchange will develop.
• B)less likely it is that a double coincidence of wants will exist,and the more likely it is that monetary exchange will develop.
• C)more likely it is that a double coincidence of wants will exist,and the less likely it is that monetary exchange will develop.
• D)more likely it is that a double coincidence of wants will exist,and the more likely it is that monetary exchange will develop.
• E)more likely it is that individuals are producing only goods they want to consume.

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Definitions:

Direct Materials

The raw materials and components that are directly used in the production of a product and can be easily associated with it.

Fabrication Department

A specialized division within a company responsible for the manufacturing and assembly of products or components.

Weighted-Average Method

A technique for calculating the cost of goods sold and remaining stock that uses the mean cost of all available units for sale.

Conversion Cost

The total cost of converting raw materials into finished goods, encompassing both labor and manufacturing overhead expenses.