The Fact That Resources Are Not Equally Productive in All

question 49

Multiple Choice

The fact that resources are not equally productive in all activities

• A)implies that a production possibilities frontier will be bowed outward.
• B)implies that gains from specialization and trade are unlikely.
• C)follows from the law of demand.
• D)implies a linear production possibilities frontier.
• E)implies that an economy should not produce certain goods.

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Definitions:

Total Variable Overhead Variance

The difference between the actual variable overhead costs incurred and the expected (or budgeted) variable overhead costs.

Material Quantity Variance

A financial measurement that calculates the difference between the expected amount of materials and the actual amount used, affecting production costs and efficiency.

Material Price Variance

The difference between the actual cost of materials used to produce a product and the standard or expected cost.

Direct Material Variances

The difference between the actual cost of direct materials used in production and the standard cost, indicating efficiency in using materials.