Which of the Following Is an Example of a Positive

question 47

Multiple Choice

Which of the following is an example of a positive economic statement?

• A) Workers with families should be paid at least the minimum wage.
• B) If crime rates were reduced, the world would be a better place to live.
• C) Marginal tax rates should be reduced for individuals in the highest tax bracket.
• D) An increase in the price of gasoline will cause a reduction in the amount of gasoline purchased.
• E) Corrupt politicians ought to be voted out of office.

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Definitions:

Job Order Cost System

An accounting system that assigns costs to individual units or batches of production, often used in manufacturing where products are custom made.

Job Order Cost System

An accounting system that accumulates costs for each individual job or project to determine its profitability.

Flow Of Costs

The way costs move through inventory accounts, eventually ending up as cost of goods sold on the income statement.

Accumulating Manufacturing Costs

The process of tracking and collecting all the costs associated with the production of goods, from raw materials to labor.