A Consumer Is a Borrower If

question 10

Multiple Choice

A consumer is a borrower if

• A) optimum current consumption is less than current disposable income.
• B) optimum current consumption is greater than current disposable income.
• C) future disposable income is greater than current disposable income.
• D) the consumer's indifference curves are relatively steep.
• E) the consumer's indifference curves are positively sloped.

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Definitions:

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.