If the Price of a Resource Increases, Other Things Constant

question 206

Multiple Choice

If the price of a resource increases, other things constant, less of that resource will be hired because

• A)producers will substitute away from that resource
• B)producers fear starting a trend toward higher resource prices
• C)the demand curve for the product will shift to the left
• D)highly paid resources don't produce as much
• E)it makes other resources look expensive as well

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Definitions:

Direct Labor

The cost of wages for employees who directly manufacture or produce goods.

Job-Order Costing System

A method of assigning costs to specific production batches or jobs, often used in manufacturing where the products are distinctly different.

Direct Labor Cost

The total cost of wages paid to employees who are directly involved in the production of a product or service.

Job-Order Costing System

A costing method used to collect and assign manufacturing costs to individual units or specific jobs.