The Secretary of Labor States That Wage Rates in the Country

question 146

Multiple Choice

The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement.

• A) normative; normative
• B) normative; positive
• C) positive; normative
• D) positive; positive
• E) proper; improper

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Definitions:

Work In Process Inventory

Represents partially finished goods that are in the production process at a given time, between raw materials and finished goods.

Process Operation

The stages or steps taken in a manufacturing or service delivery process, often involving the transformation of materials or information.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of a full finished good for inventory valuation.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.