The Existence of Marginal External Benefits for a Product Like

question 234

Multiple Choice

The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because,without government intervention,________ would be consumed and ________ would be produced.

• A) more than the efficient amount; more than the efficient amount
• B) more than the efficient amount; less than the efficient amount
• C) less than the efficient amount; more than the efficient amount
• D) less than the efficient amount; less than the efficient amount
• E) the efficient amount; the efficient amount

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Definitions:

Direct Labor Cost

The total expense incurred by a company for the wages of workers who are directly involved in the manufacturing or production process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a certain activity base.

Work in Process

Inventory that includes materials that are currently in the process of being transformed into finished goods but are not yet completed.

Direct Material Costs

The costs of raw materials or parts that are directly used in the production of products or services.