A Decrease in the Quantity of Resources Available Causes a Movement

question 55

True/False

A decrease in the quantity of resources available causes a movement down along a given PPF.

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Definitions:

Fixed Manufacturing Overhead

Costs that do not change with the level of manufacturing output, including salaries of managers and depreciation of factory equipment.

Direct Labor-Hours

The total hours of labor directly involved in producing goods or providing services.

Direct Labor Rate

The cost per hour for labor directly involved in the production of goods or services.

Production Budget

A budget outlining the number of units that must be produced within a period to meet both sales and inventory demands.