Other Things Being Equal, Which of the Following Would Be

question 12

Multiple Choice

Other things being equal, which of the following would be least important in increasing an industrial country's potential GDP?

• A) Growth in the labor force
• B) Technological advancement
• C) Increased capital formation
• D) Abundant natural resources
• E) Better labor skills

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Definitions:

Budgeted Fixed Overhead

The estimated amount of fixed costs that a business plans to incur over a certain period, usually for budgetary and planning purposes.

Production Activity

Processes involved in making goods, from raw materials to finished products.

Variable Costing

An accounting method where only variable production costs are included in product cost, with fixed overhead costs treated as period expenses.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.