Which of the Following Statements Is Correct

question 286

Multiple Choice

Which of the following statements is correct?

• A)Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages.
• B)Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link.
• C)Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link.
• D)Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.

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Definitions:

ABC

Activity-Based Costing, a method of allocating costs to products or services based on the resources they consume.

Unused Capacity

Refers to the resources or capabilities within a business that are not currently being used to their full potential, which can lead to inefficiencies or lost income.

Activity-based System

An activity-based system is a method of assigning costs to products or services based on the activities that go into producing them, aiming to provide more accurate cost information.

Resource Drivers

Factors that determine the consumption of resources within a business or organization.