Economists Tell Stories

question 2

Multiple Choice

Economists tell stories:

• A)in order to breathe life into economic theory and personalize abstract ideas.
• B)because economics is an art,not a science.
• C)as a way of rigorously testing economic theory.
• D)because doing so is a required part of the scientific method.
• E)to show how their theory can predict at least one real-world situation.

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Definitions:

Product Cost

Refers to the total expenses incurred to manufacture a product, including direct labor, direct materials, and manufacturing overhead.

Checkout Clerk

An employee who is responsible for handling the final processing of transactions at the checkout counter of a retail store, including customer payment and bagging of items.

Selling Expense

Expenses directly related to the selling of products or services, such as advertising, sales commissions, and promotional materials.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling and administrative expenses.