If the Labor Force Is Growing at a 3 Percent

question 84

Multiple Choice

If the labor force is growing at a 3 percent rate and the efficiency of a unit of labor is growing at a 2 percent rate, then the number of effective workers is growing at a rate of:

• A) 2 percent.
• B) 3 percent.
• C) 5 percent.
• D) 6 percent.

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Definitions:

Contribution Margin

A department’s net profit, used to cover indirect expenses.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core activities.

Indirect Expenses

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a business.

Direct Expense

A cost that can be directly attributed to the production or sale of specific goods or services in a business.