Markets Can Fail to Achieve Efficiency When

question 3

Multiple Choice

Markets can fail to achieve efficiency when

• A)there are prices consumers do not think are fair.
• B)there are wages workers do not think are fair.
• C)trade puts people out of work.
• D)there are public goods.

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Definitions:

Actual Cost

The actual amount spent on goods, services, and labor to produce an item or to run a company.

Data Collected

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activities, allowing for more accurate budgeting and variance analysis.