Is It Possible for the Economy to Be at Full

question 3

Multiple Choice

Is it possible for the economy to be at full employment and still have some people who are unemployed?

• A) No,full employment means that no one is unemployed.
• B) Yes,since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment.
• C) Yes,since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment.
• D) Yes,since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate,and there is always some cyclical unemployment.
• E) none of the above

Describe the factors influencing the determination of the "right" price for products and services.

Identify the categories of total costs and their impact on pricing.

Explain consumer behavior and responses to price changes in various product categories.

Assess the role of competition in pricing decisions.

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Definitions:

Standard Costing

Standard costing is an accounting method that applies estimated costs to product costs for budgeting purposes and performance evaluation, facilitating variance analysis.

Variable Overhead

Costs that fluctuate with production levels, such as utilities or materials used in the manufacturing process.

Labour Efficiency Variance

A measure of the difference between the actual hours worked and the hours that should have been worked for the level of production achieved.

Overhead Spending Variance

The difference between the actual overhead expenses incurred and the overhead expenses budgeted or planned for a period.