Economists Use the Term "Market Failure" to Refer to Those

question 119

Multiple Choice

Economists use the term "market failure" to refer to those free-market situations where

• A)income is not distributed equitably.
• B)allocatively efficient outcomes are not achieved.
• C)externalities are present in the economy.
• D)the economy is not in equilibrium.
• E)government has intervened in the economy.

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Definitions:

Job F

Based on context, this could refer to a specific job identifier in job costing, tracking costs and revenue associated with a particular job.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a selected activity base.

Direct Labor-hour

The number of labor hours spent on the direct production of goods or services.

Manufacturing Overhead

Costs incurred from the manufacturing process, which exclude both direct labor and materials, are categorized as indirect costs.