Haley Discovers a New Way to Design Automobile Engines So

question 17

Multiple Choice

Haley discovers a new way to design automobile engines so that they use less gasoline. Haley's finding is an example of

• A)physical capital. If Haley's discovery leads to lower gasoline prices, it has made gasoline less scarce.
• B)physical capital. If Haley's discovery leads to lower gasoline prices, it has made gasoline scarcer.
• C)technological knowledge. If Haley's discovery leads to lower gasoline prices, it has made gasoline less scarce.
• D)technological knowledge. If Haley's discovery leads to lower gasoline prices, it has made gasoline scarcer.

---

Definitions:

Production Activity

The series of operations involved in the manufacturing of goods and products.

Accounting

The process of recording, classifying, summarizing, and interpreting financial information.

Weighted-Average Method

An inventory valuation method that assigns the average cost of all similar items in the inventory to the cost of goods sold and ending inventory.

Direct Labor Cost

The total expense of paying employees who directly manufacture or produce goods, excluding indirect labor like maintenance personnel.