Related to the Economics in Practice on P

question 9

Multiple Choice

Related to the Economics in Practice on p.39: The results of the survey conducted by Esther Duflo and Abhijit Banerjee found that in extremely poor societies,

• A)household choice plays no role in consumption decisions.
• B)all consumption decisions are made by the government.
• C)household choice even plays a role in non-food-related consumption decisions.
• D)the only consumption decisions in which household choice plays a role is in the consumption of biological needs such as food.

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Definitions:

Standard Price

The predetermined cost that a company expects to pay for materials, labor, and other inputs, used as a benchmark for variance analysis.

Actual Grams

The real-world measurement of weight for materials used in a production or laboratory setting, as opposed to theoretical or estimated amounts.

Labour Efficiency Variance

The difference between the actual labor hours spent on production and the expected (or standard) labor hours, multiplied by the standard labor rate.

Actual Total Labour Cost

The real amount spent on wages and benefits for employees involved in the production process during a specific period.