Giving Presents on Christmas Does NOT Generate a Deadweight Loss

question 92

Multiple Choice

Giving presents on Christmas does NOT generate a deadweight loss if

• A)all gift are money.
• B)everybody gets exactly want she wants.
• C)nobody can be made better off by returning the gift and purchasing a different one.
• D)All of the above.

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Definitions:

Direct Material Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost.

Direct Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard wages paid for that labor.

Direct Labour Efficiency Variance

A measure used in management accounting to assess the difference between the actual hours worked and the standard hours expected to produce a certain level of output.

Direct Labour Price Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the actual hours worked.