What Is the Basic Task That Economists Expect the Market

question 32

Multiple Choice

What is the basic task that economists expect the market to carry out?

• A)deal with the fundamental problem of scarcity 
• B)balance the government's budget 
• C)lessen wants to the level of income available 
• D)meet all human wants

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Definitions:

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period to allocate overhead costs to products or services based on a relevant activity base.

Variable Manufacturing Overhead

Costs that vary with the level of production output and may include items such as utility expenses and raw materials.

Direct Labor-Hours

Total time spent by staff members who are directly part of the manufacturing operations.

Fixed Manufacturing Overhead

Fixed manufacturing overhead includes regular, consistent costs involved in manufacturing that do not vary with the level of production, such as salaries of managers and factory rent.