Which of the Following Statements Is True

question 351

Multiple Choice

Which of the following statements is true?

• A) The share of income going to labor has increased during periods when union membership has increased as a proportion of the U.S. labor force.
• B) Inflation in the United States has tended to accelerate as the proportion of the U.S. labor force that is unionized has increased.
• C) Higher wages in the unionized sectors of an economy will also push up wages in the nonunion sectors.
• D) High real wages cannot be achieved and sustained without increases in output per worker hour.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Work in Process

Inventory items that are partially completed but not yet ready for sale, representing an intermediate stage in production.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both materials and labor costs.

Work in Process

Inventory that includes all materials, labor, and overhead costs for products in the process of production but not yet complete.