The Supply of Human Capital to a Particular Use Is

question 87

Multiple Choice

The supply of human capital to a particular use is

• A) perfectly inelastic in the short run.
• B) perfectly elastic in the long run.
• C) more inelastic in the short run since it takes time for persons to acquire a particular skill.
• D) more elastic in the short run since individuals who already possess the particular skill can be attracted into the labor force in the short run.

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Definitions:

Unfavourable Variance

A financial term indicating that actual results are worse than expected or budgeted results, leading to a negative impact on profitability.

Sales Volume Variance

A metric used in budgeting and accounting to measure the difference between the actual quantity sold and the expected sales volume, indicating the impact on profit.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and variable overhead) in product costs and treats fixed overhead as a period expense.

Opening Stock

The value of inventory that a company has on hand at the beginning of an accounting period.