Which of the Following Factors Will Not Determine Output and Employment

question 32

Multiple Choice

Which of the following factors will not determine output and employment in the classical model?

• A)Taxes that affect the incentive to work or hire labor
• B)The level of government spending
• C)The quantity of capital
• D)Preferences for leisure
• E)None of the above

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Payroll Payable

A liability account that represents the amount of money a company owes to its employees for wages earned but not yet paid.

Work-in-Process Inventory

Work-in-process inventory includes partially finished goods that are still in the production process at the end of an accounting period.

Hourly Manufacturing Labor

The cost associated with labor that is paid on an hourly basis within a manufacturing environment.