If the Cost Efficiency of Labor Equals 2,then

question 117

Multiple Choice

If the cost efficiency of labor equals 2,then

• A)Labor costs 100 percent more than the revenue it generates.
• B)The wage rate is 100 percent more than the product price.
• C)Each extra dollar spent on wages returns 2 units of additional output.

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Definitions:

Savings

The portion of disposable income not spent on current consumption but set aside for future use, often in a deposit account or as investments.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Aggregate Demand

The total demand for goods and services within an economy at a given overall price level and in a given time period.

Conclusions

The summary of findings or the final arguments presented after an analysis or discussion.