If an Economy Is Closed and If It Has No

question 611

Multiple Choice

If an economy is closed and if it has no government, then

• A)national saving = private saving.
• B)total income = consumption + investment.
• C)saving = total income - consumption.
• D)All of the above are correct.

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Definitions:

Work in Process

Inventory that is in the production process but is not yet completed, representing a stage between raw materials and finished goods.

Direct Materials

Raw materials that are directly identifiable and assignable to the production of goods.

Factory Overhead

All expenses related to production that aren't direct materials or direct labor costs.

Per-Unit Cost

The cost associated with producing or acquiring a single unit of product.