Which of the Following Is NOT True About Capitalism

question 16

Multiple Choice

Which of the following is NOT true about capitalism?

• A) Capitalism refers to an economic system where businesses are privately owned with a strong individualistic profit orientation.
• B) Very little role for government exists in a purely capitalistic or "free market" economic system.
• C) Individual gains and losses of wealth can be very large.
• D) Individual incentives are at the core of capitalistic economic ideology.
• E) Passage of the Patient Protection and Affordable Care Act marked the United States' movement away from capitalism.

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Definitions:

Direct Labor-hours

The total time that production workers spend working on products or production processes, used as a base for applying manufacturing overhead.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead expected for the actual production level.

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production output, such as utilities and some wages.

Materials Price Variance

The variance between the real expense of materials and their anticipated (or standard) cost.