The Figure Given Below Represents an Economy Producing Corn and Planes

question 60

Multiple Choice

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2

-Which of the following will bring about an inward shift of a production possibilities curve [PPC]?

• A)A decrease in the amount of resource employment
• B)An increase in the working-age population
• C)An increase in unemployment
• D)A decrease in the availability of natural resources
• E)An increase in the amount of capital available

---

Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to cost objects based on a chosen activity base.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and factory management salaries, excluding direct materials and direct labor costs.

Manufacturing Overhead Account

An account used to record indirect costs associated with production, such as utilities and maintenance, not directly tied to any specific product.