The Standard Price of Direct Labor Does Not Include Which

question 18

Multiple Choice

The standard price of direct labor does not include which of the following items?

• A)FICA taxes
• B)health insurance
• C)retirement contributions
• D)vacation pay.

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Definitions:

Relatively Inelastic

Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price.

Deadweight Loss

A situation where inefficiency in the market leads to a loss of total social welfare, typified by a gap between the supply and demand curves.

Relatively Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to changes in price.

Elastic Supply

A situation in which the supply of a good or service changes significantly in response to changes in price.