Refer to the Diagram

question 110

Multiple Choice

Refer to the diagram. Which of the following would be consistent with an increase in racial prejudice against African Americans and thus an increase in the discrimination coefficients of employers, taken as a group?

• A)a shift in the labor demand curve from D₂ to D₃
• B)a shift in the labor demand curve from D₂ to D₁
• C)an increase in African-American employment from Q₂ to Q₃
• D)an increase in the African-American wage rage from W₁ to W₂

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Definitions:

Direct Labor Costs

Compensation and perks given to workers directly engaged in creating products or services.

Fixed Overhead

Regular, unchanged costs associated with operating a business, such as rent and salaries, irrespective of production levels.

Work in Process

Goods that are in various stages of completion in the manufacturing process but are not yet finished products.

Direct Labor Variances

The differences between the actual labor costs incurred and the standard labor costs for the actual production achieved.