Which of the Following Is Not an Example of Efficiency

question 106

Multiple Choice

Which of the following is not an example of efficiency wages?

• A)More productive workers are paid more to reflect their higher output.
• B)Higher wages induce higher output from workers.
• C)Better quality applicants apply for jobs that pay above-equilibrium wages.
• D)Workers are less likely to leave jobs that pay above-equilibrium wages.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation on equipment, and factory rent.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base such as machine hours or labor hours.

Direct Labor-Hours

The full extent of hours dedicated by employees who are directly integrated into the production process.

Manufacturing Overhead

All indirect factory-related costs incurred during the production process, excluding direct materials and direct labor costs.