The Quantity Demanded of Labor Will Decrease If

question 138

Multiple Choice

The quantity demanded of labor will decrease if:

• A)the productivity of labor decreases.
• B)the productivity of labor increases.
• C)the price of labor rises.
• D)there is an increase in the supply of a factor labor uses.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating revenue.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period expenses that are charged to the income statement in the period they are incurred.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overheads - in the cost of a unit of product.

Contribution Format

A financial statement layout that separates fixed costs from variable costs to highlight the contribution margin of a business.