Suppose There Is No Unemployment in the Economy and Society

question 50

Multiple Choice

Suppose there is no unemployment in the economy and society decides that it wants more of one good.Which of the following statements is true?

• A)It can only achieve this with an advance in technology.
• B)It can increase output without giving up another good.
• C)It can only achieve this with an increase in resource supplies.
• D)It will have to give up production and consumption of some other good.

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Definitions:

Denominator Level

A term used in cost accounting to represent the base level or quantity used in calculating rates, such as in the determination of overhead rates or per-unit costs.

Fixed Overhead

Regular, consistent costs incurred by a business that are not affected by the level of goods or services produced, such as rent and salaries.

Budget Variance

The difference between the budgeted or planned amount of expenses or revenues, and the actual amount incurred or earned.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.