Yang Just Got a Big Promotion at Work, Which Includes

question 141

Multiple Choice

Yang just got a big promotion at work, which includes a sizable pay increase. Yang's demand for ramen noodles, an inferior good, will likely _____ and his demand curve will _____.

• A) decrease; shift to the right
• B) decrease; shift to the left
• C) increase; shift to the right
• D) decrease; not move, although there will be movement along the curve

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Definitions:

Factory Overhead Costs

All the indirect costs associated with manufacturing, excluding direct materials and direct labor costs; includes costs such as maintenance, utilities, and rent.

Factory Overhead

All the indirect costs associated with the production process, such as utilities, maintenance, and salaries for production managers.

Labor Costs

The total expenditure borne by employers for the employment of labor, including wages, salaries, benefits, and taxes associated with employment.

Production Orders

Production orders are formal instructions or commands to start the manufacture of a specific quantity of products at a certain time, detailing materials, equipment, and departments involved.