Economists Caution That Conventional Statistics Used to Estimate the Extent

question 7

Multiple Choice

Economists caution that conventional statistics used to estimate the extent of poverty in the United States fail to account for benefits people receive that, if considered, would reduce the amount of poverty. Which of the following is an example of these benefits?

• A) Individuals can use tax credits and the personal exemption to reduce their taxable incomes. This reduces what they owe the government and increases their disposable incomes.
• B) The federal income tax system is progressive. As a result, the poor have higher after-tax incomes than they would have if the income tax system was proportional or progressive.
• C) Individuals with low incomes receive non-cash benefits such as free school lunches and food stamps.
• D) The federal minimum wage forces employers to pay workers with low skills an efficiency wage.

Recognize the significance of separating activities into different levels for accurate costing.

Analyze the correlation between overhead costs and different allocation bases.

Grasp the complexity and structure of an activity-based costing system compared to traditional costing systems.

Acquire knowledge on how specific activities relate to the overall process of producing a product and managing overhead costs.

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Definitions:

Excessive Hours

Working hours that exceed the standard legal or culturally accepted normal working hours, potentially leading to health issues and reduced work-life balance.

Increased Litigation

Refers to a situation where there is a significant rise in the number of legal cases or lawsuits, often implying more legal disputes or conflicts requiring resolution in court.

Employee Loyalty

the devotion and commitment an employee has towards their employer and company, often reflected in their willingness to stay with the company long term.

Job Satisfaction

The level of contentment employees feel about their work, considering factors like job environment, salary, and duties.