Which One of the Following Statements Is False

question 48

Multiple Choice

Which one of the following statements is false?

• A)An effective minimum wage sets the wage rate above the equilibrium wage rate.
• B)An effective rent ceiling sets the rent below the equilibrium rent.
• C)An effective rent ceiling leads to a housing shortage.
• D)An effective minimum wage is inefficient.
• E)A minimum wage is a price ceiling in the labour market.

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Definitions:

Predetermined Overhead Rate

A predetermined rate employed to allocate estimated manufacturing overhead costs to products, calculated before the period starts, using projected costs and activity levels.

Direct Labour Hour

A measure of labor that directly contributes to the production of goods, used in calculating labor costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including costs related to indirect materials, indirect labor, and other indirect expenses.

Overapplied Overhead

This occurs when the overhead allocated to products or job orders during a period exceeds the actual overhead costs incurred.