Which of the Following Statements Is True

question 79

Multiple Choice

Which of the following statements is true?

• A) Technological gains tend to reduce the demand for labor because producers substitute technology and capital for labor.
• B) Technological change and capital investment tend to increase real wages because labor productivity increases.
• C) Technological change and capital investment tend to reduce the quantity of labor employed, and reduce real wages.
• D) Technological change and capital investment tend to reduce the demand for labor and increase the supply of labor leading to an indeterminate effect on real wages.

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Definitions:

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead, rent, and administrative salaries.

Manufacturing Environment

A setting where goods are produced on a large scale using machinery, labor, and other resources.

Factory Overhead Incurred

The total costs associated with operating a factory that are not directly related to the production, including utilities, maintenance, and property taxes.

Direct Materials Used

Raw materials directly utilized in the production of goods, tracked for the calculation of the cost of goods sold.