The Government of Puritania Has Begun a Program to Restructure

question 19

Multiple Choice

The government of Puritania has begun a program to restructure of the economy, with a goal of moving toward a more market-oriented system. Which of the following is LEAST likely to occur as the result of this restructuring?

• A) cuts in social programs such as free or low-cost healthcare
• B) a rise in social unrest as citizens try to adjust to the economic reforms
• C) slower rates of economic growth and lower standards of living for the majority of citizens
• D) privatization of formerly government-owned enterprises

---

Definitions:

General Overhead

General overhead encompasses all indirect costs involved in running a business that are not directly tied to a specific product or service, such as utility expenses and salaries of administrative staff.

Unit Selling Price

The amount of money charged to the customer for a single unit of a product or service.

Variable Cost Concept

Costs that vary directly with the level of production output, such as raw materials and labor involved in production.

Selling Price

The price at which a product or service is offered to consumers, determined by factors such as cost, market demand, and competition.