Suppose All Citizens in a Certain City Are Given Identical

question 250

Multiple Choice

Suppose all citizens in a certain city are given identical debit cards used to pay for toll roads.Which of the following statements would not be correct,assuming that the debit cards could be sold privately from person to person?

• A)It would be a very egalitarian policy.
• B)The system would redistribute income from those who drive more to those who drive less.
• C)The system could potentially redistribute income from the rich to the poor if the poor drive less.
• D)The cost to the government of such a program would greatly outweigh the benefit to society.

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Definitions:

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.

Standard Costing System

A cost accounting method that assigns a fixed cost to inventory and measures variances against actual production costs to manage business expenses.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating efficiency in labor usage.

Direct Labor-Hours

Entire duration of work by employees intricately involved in the manufacturing phase.