The Basic Principles of Economics Suggest That

question 33

Multiple Choice

The basic principles of economics suggest that

• A)markets are seldom, if ever, a good way to organize economic activity.
• B)government should become involved in markets when trade between countries is involved.
• C)government should become involved in markets when those markets fail to produce efficient or equitable outcomes.
• D)All of the above are correct.

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Definitions:

Labor Rate Variance

The difference between the actual hourly wage rate paid to workers and the expected or standard rate, affecting production costs.

Labor Rate Variance

The variance between the real hourly wage workers receive and the anticipated or usual wage rate, when multiplied by the total hours of work.

Labor Efficiency Variance

The variance between the real hours spent working and the anticipated standard hours, times the normal wage rate.

Standard Hours

The predetermined amount of time expected to complete a task or produce a unit of product under normal conditions.