A Pareto Optimum

question 61

Multiple Choice

A Pareto optimum

• A) can be found in a closed and open economy.
• B) is found where the budget line is tangent to the indifference curve.
• C) is the same as a competitive equilibrium.
• D) is where the consumption line is tangent to the PPF.
• E) the slope of the PPF.

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Definitions:

Materials Quantity Variance

The discrepancy between what was actually used in terms of material for production and what was anticipated, times the standard cost for each unit.

Direct Material

Primary materials used in the making of a product that can be directly traced to the finished good.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, multiplied by the quantity of materials.

Labor Efficiency Variance

A measure used to assess the difference between the actual hours worked and the standard hours allotted to complete a task, multiplied by the standard hourly labor rate.