Why Did Vernon Smith Win the Nobel Prize in Economics

question 81

Multiple Choice

Why did Vernon Smith win the Nobel Prize in Economics in 2002?

• A) He created the theory of supply and demand.
• B) He used laboratory experiments as a tool to confirm the theory of supply and demand.
• C) He was able to disprove the theory of supply and demand.
• D) This is a trick question, because Vernon Smith did not win the Nobel Prize.

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Definitions:

Fixed Overhead

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance, ensuring the basic operational capability of a business.

Standard Cost

A predetermined or estimated cost of performing an operation or producing a good, used in budgeting and cost management.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service, used in calculating labor costs.

Inventory Accounts

Inventory accounts are financial accounts used to track the quantities and costs of products a company holds for sale in the normal course of business.