Suppose You Are Considering Buying Stock in the Stock Market

question 153

Multiple Choice

Suppose you are considering buying stock in the stock market, and your objective is to maximise your net worth.Furthermore, your study of the market reveals that the economy will be slowing down over the next several months.Under these conditions, it would be best to purchase stock in companies that produce________.

• A)normal goods.
• B)luxury goods.
• C)inferior goods.
• D)price elastic goods.

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Definitions:

Direct Labor Cost

The expense related to the work of employees directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Labor-Hours

Direct labor-hours are the total number of hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.

Direct Materials

Raw materials that can be directly identified with the production of specific goods or services and are a major component of product costs.

Budgeted Production

The planned level of production output, calculated based on demand forecasts and inventory requirements.