Consider a Hypothetical Economy in Which Only

question 115

Multiple Choice

Consider a hypothetical economy in which only
Computers and shoes are produced.If two resources
Are being used, labor and capital, then any increase in
Immigration in the long run:

• A)will decrease wages in the shoe industry.
• B)will decrease wages in the computer industry.
• C)will increase wages in the shoe industry.
• D)will keep wages constant because marginal products do not change.

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Definitions:

Rate Variance

The difference between the actual rate of expense or income and its expected (standard) rate, often used in variance analysis.

Direct Labor-Hours

The cumulative hours employees directly participating in the production process have worked.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of materials.

Variable Manufacturing Overhead

Costs that vary in total in direct proportion to changes in the volume of production, such as indirect materials and utility costs directly tied to production.