It Is Likely That, If We Could Measure the Quality

question 420

Multiple Choice

It is likely that, if we could measure the quality as well as the quantity of education,

• A)the human-capital argument would become less compelling as a means of explaining wage differentials between white workers and black workers.
• B)the human-capital argument would become less compelling as a means of explaining wage differentials between male workers and female workers.
• C)wage differentials between white workers and black workers would be more puzzling than they are now.
• D)wage differentials between white workers and black workers would be more fully explained.

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Definitions:

Standard Labor Rate

The predetermined hourly wage rate used in cost accounting to calculate labor costs.

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.

Standard Costing System

A cost accounting method that assigns a fixed cost to inventory and measures variances against actual production costs to manage business expenses.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating efficiency in labor usage.