In Part, Microeconomics Is Concerned with

question 455

Multiple Choice

In part, microeconomics is concerned with

• A) how a business firm decides upon the amount it produces and the price it sets.
• B) changes in the economy's total output of goods and services over long periods of time.
• C) factors that explain changes in the unemployment rate over time.
• D) the Federal Reserve's policy decisions.

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Definitions:

Raw Materials

Basic materials and components required in the manufacturing process to produce finished goods.

Direct Labor

Costs associated with employees who directly manufacture or produce goods, such as wages for factory workers.

Overhead

Refers to the ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.

Work In Process Inventory

Work In Process Inventory consists of partially completed goods that are still in production, representing a component of a manufacturing company's inventory.