Though Markets Can Provide Goods That Are Excludable but Nonrival

question 67

Multiple Choice

Though markets can provide goods that are excludable but nonrival, they do so at the price of:

• A) efficiency.
• B) inefficiency.
• C) equity.
• D) inequity.

---

Definitions:

Direct Labor

Refers to the wages paid to workers who are directly involved in the production of goods or services.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs, indicating overhead management effectiveness.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salaries of factory supervisors and rent of the manufacturing facility.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the quantity of materials purchased, used as a measure of cost control.