Gomez Argues That We Need to Increase the Nation's Output

question 194

Multiple Choice

Gomez argues that we need to increase the nation's output. Chang contends that our top priority should be a more equal distribution of income and output. It can be correctly stated that these two goals are

• A) essentially unrelated.
• B) complementary because the realization of one will promote fulfillment of the other.
• C) at least partially competing because the redistribution of income might impair incentives to work and produce.
• D) complementary because a more equal distribution of income always promotes economic growth.

Understand the concept of investments in human capital and its importance for individual and organizational productivity.

Recognize the economic reasoning behind employer investments in employee education and the expected returns in terms of labor productivity.

Comprehend how changes in consumer demand impact the demand for resources needed to produce goods.

Grasp the principles underlying the derived demand curve for a resource and how it is affected by changes in the demand for final products.

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Definitions:

Predetermined Overhead Rate

This is a rate used to allocate manufacturing overhead costs to products or job orders, estimated by dividing total estimated overhead costs by an allocation base, such as direct labor hours or machine hours.

Variable Manufacturing Overhead

Costs that vary with the level of production output but are indirect in nature, such as indirect materials and utilities.

Fixed Manufacturing Overhead

Regular, fixed costs associated with operating a manufacturing facility, including costs like rent, depreciation, and property taxes.

Machine-Hours

A measure of production activity that represents the total hours machines are operating over a given period.