-When Are Black Markets Likely to Arise

question 349

Multiple Choice

-When are black markets likely to arise?

• A) when the government removes a price floor
• B) when the government enforces a price ceiling
• C) when there is a surplus of a good
• D) when the quantity supplied of a good exceeds the quantity demanded

---

Definitions:

Direct Labor-Hours

A measure of the hours worked by employees directly involved in the production process.

Variable Overhead

Expenses that vary with production levels, such as costs for power or materials used in the manufacturing process.

Direct Materials

Raw materials and components used in the manufacturing process that are directly incorporated into the final product.

Direct Labor-Hours

Represents the total hours worked by employees directly involved in the manufacturing process.