Economists Use What Term to Describe the Want-Satisfying Power of a Good

question 2

Multiple Choice

Economists use what term to describe the want-satisfying power of a good?

• A) Demand
• B) Utility
• C) Marginal propensity to consume
• D) Income elasticity

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Definitions:

Direct Labor-Hours

The total hours worked directly on the manufacture of products, used for assigning labor costs to units of production.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, often used to monitor and control production costs.

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services, often used as a basis for allocating labor costs to products.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and maintenance expenses.