The Average Work Week in the United States Has Declined

question 80

Multiple Choice

The average work week in the United States has declined to fewer than 40 hours even though wage rates have been increasing.The best explanation of this phenomenon is that

• A)the labor supply curve shifted to the right
• B)the labor demand curve shifted to the right
• C)the income effect of rising wages outweighed the substitution effect
• D)the income effect of rising wages could not outweigh the substitution effect
• E)none of the above

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Definitions:

Overhead Cost Pool

A collection of indirect costs that are grouped together to aid in their allocation to cost objects.

Activity Measure

A metric used to quantify the level of activity, work, or output in a business process or operation.

Overhead Rate

A financial ratio that allocates overhead costs to products or services based on a predetermined measure, often used to calculate total production costs.

Cost Hierarchy

A system that categorizes costs based on their direct traceability to production activities, often utilized in activity-based costing.