Every Economy Must Ration Goods in Some Way Because of

question 122

Multiple Choice

Every economy must ration goods in some way because of

• A) overpopulation.
• B) poorly-performing markets.
• C) the income gap between rich and poor.
• D) scarcity.

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Definitions:

Budgeted Amount

Financial projections or planned amounts set aside for specific purposes, revenues, or expenses during a budget period.

Quantity Variance

The difference between the expected amount of materials or products required for production and the actual amount used, affecting budget or efficiency evaluations.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Favorable

A term used in accounting and finance to describe a condition or result that is better than expected or budgeted.