The Lack of Capital in Developing Nations Causes

question 43

Multiple Choice

The lack of capital in developing nations causes

• A) labor productivity to remain low.
• B) the savings rate to be too high.
• C) output to be low in the present but high in the future.
• D) consumption rates to be too high.

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Definitions:

Variable Selling Cost

Variable selling costs fluctuate with sales volume; they include expenses such as commission and shipping that increase with higher sales.

Constrained Resource

A limited resource within a system that significantly affects the throughput or output of the system.

Special Order

A special order refers to a one-time purchase order often at a discounted price, usually for large quantities that is outside the normal scope of operations.

Direct Labor Hours

Total working hours logged by employees who are intimately involved with the production operations.