_____ Is Based Upon the Assumption That People Are Predictable

question 6

Multiple Choice

_____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.

• A)Rational economics
• B)Socialism
• C)Capitalism
• D)Behavioral economics
• E)Consumerism

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as utilities, depreciation, and maintenance of equipment.

Raw Materials

Basic materials used in the production process to manufacture finished goods.

Raw Materials Inventory

The total cost of all the materials that are held by a company and that will be used in production.

Raw Materials Purchases

refer to the acquisition of the basic inputs required to manufacture products; these materials have yet to be processed or used in production.