A Simplified Version of Reality That Is Used to Clarify

question 71

Multiple Choice

A simplified version of reality that is used to clarify economic situations is called a(n) :

• A)economic fact.
• B)current event.
• C)model.
• D)scarce resource.

Recognize the historical trends in labor productivity growth in the U.S. and their implications.

Identify factors that influence productivity growth.

Understand the relationship between labor productivity, employment growth, and output per capita.

Evaluate the role of computers and technology in productivity growth.

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Definitions:

Volume Variance

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced.

Factory Overhead Cost

All of the costs of producing a product except for direct materials and direct labor.

Normal Capacity

The average level of operational output or activity that a company can sustain over a long period, considering fluctuations in demand and maintenance schedules.

Cost Variance

The difference between the actual cost and the standard or planned cost in a budget.