Referring to a Production Possibilities Curve and the Goods Being

question 164

Multiple Choice

Referring to a production possibilities curve and the goods being compared,depict the economic event.The AIDS epidemic becomes rampant in America claiming millions of lives (capital goods vs.consumer goods) .

• A)A movement from a point inside the curve to a point on or near the curve
• B)A movement from a point on or near the curve to a point inside the curve
• C)A shift in the entire curve to the right (outward)
• D)A shift in the entire curve to the left (inward)
• E)A movement along the curve

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Definitions:

Direct Materials

Ingredients that are identifiable as directly contributing to the creation of a product.

Direct Labor

The cost of labor directly involved in the manufacture of products, such as wages paid to workers on the assembly line.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and salaries of non-direct labor.

Direct Labor

Direct labor refers to the wages paid to employees who are directly involved in the production of goods or services.