The Study of How the Allocation of Resources Affects Economic

question 7

Multiple Choice

The study of how the allocation of resources affects economic well-being is called

• A)consumer economics.
• B)macroeconomics.
• C)willingness-to-pay economics.
• D)welfare economics.

---

Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used for costing purposes, production scheduling, and capacity planning in manufacturing.

Forming Department

A division or section within a manufacturing plant where a specific, dedicated portion of the production process occurs, focusing on shaping or forming materials into parts or products.

Assembly Department

A sector within a manufacturing facility where individual components are assembled into final products.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the start of a period based on estimated costs and activity levels.