A Free Market Fails When

question 130

Multiple Choice

A free market fails when

• A)there is government intervention.
• B)there is an external effect in either production, consumption, or both.
• C)firms that produce goods which create positive externalities go bankrupt.
• D)firms that produce goods which create negative externalities earn high profits.

Distinguish between job-order costing and process costing, and identify which method is appropriate for different industries.

Calculate equivalent units of production for materials and conversion costs using the weighted-average method.

Determine the cost of ending work in process inventory and the cost of units transferred out using the weighted-average method.

Compute the costs per equivalent unit for materials and conversion costs.

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Definitions:

Constitutionality

The quality or condition of being in accordance with a country's constitution; the legality of actions or statutes as judged by constitutional principles.

Welfare Reforms

Changes to social welfare policies aimed at improving the system's efficiency, encouraging employment among beneficiaries, and reducing government welfare spending.

Federal Cash Assistance

Government financial aid provided to individuals, typically targeting low-income families, through programs funded at the federal level.

Nonworking and Able-bodied

Refers to individuals who are physically capable of working but are currently not employed and are not participating in the labor force.