Compare a Property Rights System in Which People Are Allowed

question 32

Multiple Choice

Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds.We should expect more entrepreneurship under the __________ system and faster real economic growth under the __________ system.

• A) former; former
• B) former; latter
• C) latter; former
• D) latter; latter

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on hours worked and pay rates.

Labor Efficiency Variance

The variance between the actual number of labor hours utilized and the anticipated standard labor hours for the achieved production volume.

Raw Materials Inventory

The stock of materials on hand that are used in the manufacturing process to produce goods.

Transaction (b)

Likely refers to a specific, numbered transaction within a set of financial records or accounting entries, without additional context provided.