Related to the Economics in Practice on Page 35: the Results

question 159

Multiple Choice

Related to the Economics in Practice on page 35: 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.

---

Definitions:

Standard Wage Rate

The predefined hourly rate paid to employees for their labor, often based on industry standards, experience, and job role.

Direct Labour Hours

The total number of hours worked by employees that are directly involved in the production process of goods or services.

Standard Wages

Predetermined rates of pay for specific tasks or jobs, used in budgeting and variance analysis.

Standard Hours Allowed

The predetermined amount of time that should be required to complete a specific task or produce a certain amount of goods.