Macroeconomics Analyzes

question 206

Multiple Choice

Macroeconomics analyzes

• A) the operation of individual markets in the economy.
• B) the economic choices of individual households.
• C) government decisions to regulate the cellular phone industry.
• D) insider trading in the stock market.
• E) the performance of the national economy and the global economy.

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Definitions:

Standard Quantity

The preset amount of materials or inputs theoretically required to produce a single unit of product under normal operating conditions.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Direct Materials

Raw materials that are directly traceable to the finished product and constitute a significant part of its costs.

Variable Overhead Spending Variance

The difference between actual variable overhead costs incurred and the expected (standard) costs based on the actual level of production activity.