If There Is Diminishing Marginal Productivity of Labor in Production

question 12

Multiple Choice

If there is diminishing marginal productivity of labor in production (with other inputs held constant) , an outmigration of labor from low-wage country A to higher-wage country B will lead, other things equal, to a __________ in per capita income in country B and __________ in per capita income in country A.

• A) rise; also to a rise
• B) rise; to a fall
• C) fall; also to a fall
• D) fall; to a rise

Grasp the structure and implications of semantic networks and schemas on memory.

Appreciate the role of context and cues in memory retrieval.

Relate memory processes to real-world applications, particularly in eyewitness testimonies and everyday recollections.

Understand theories of why forgetting occurs, including decay theory and interference theory.

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Definitions:

Direct Labour-Hours

A measure of the amount of time workers spend directly manufacturing a product or providing a service.

Traditional Costing System

A traditional costing system allocates factory overhead to products based on volume-related measures such as direct labor hours or machine hours.

Overhead Cost Per Unit

This is the amount of indirect costs allocated to each unit of production, including costs not directly tied to the production like rent and utilities.

Activity-Based Costing

A costing methodology that assigns costs to products based on the activities required to produce them, aiming to provide more accurate product costing.