The Principles of Economics Cannot Explain Which of the Following

question 56

Multiple Choice

The principles of economics cannot explain which of the following:

• A) Why people choose to work or go to college.
• B) Why a country might prosper.
• C) How the value of money changes over time.
• D) How the temperature index is measured.

---

Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the number of completed units they represent.

Materials

The raw inputs used in the manufacturing process to create a finished product.

Weighted-Average Method

A cost accounting method that calculates the cost of equivalent units of production by considering the weight of the cost of current and prior periods' goods.

Equivalent Units

A concept used in cost accounting to express the amount of work done by manufacturers in terms of fully completed units.