-If the Economy Was Producing at Point D and Moved

question 207

Multiple Choice

-If the economy was producing at point D and moved to point C

• A)the unemployment rate would increase.
• B)the unemployment rate would decrease.
• C)the production possibilities frontier would shift outward.
• D)the production possibilities frontier would shift inward.
• E)None of these choices are true.

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Definitions:

Minimum Required Return

The minimum return that investors expect to earn from their investment.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.

Materials Price Variance

The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased.

Standard Quantity

The expected or established quantity of materials or labor expected to be used during a manufacturing process or production cycle.