Labour-Augmenting Technological Change Refers to Improvements in Efficiency That

question 29

Multiple Choice

Labour-augmenting technological change refers to improvements in efficiency that

• A) occur without increasing the productivity of labour or the efficiency of capital goods.
• B) increase the productivity of labour and the efficiency of capital goods.
• C) increase the efficiency of capital goods without having to increase the productivity of labour.
• D) increase the productivity of labour but that do not directly make capital goods more efficient.

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Definitions:

Cost Or Market

An accounting method for inventory valuation, valuing inventory at the lower of its historical cost or market value.

Weighted Average Cost

A method of inventory costing that assigns a weighted average cost to each unit of inventory on hand, based on the cost of goods available for sale and the number of units available.

Perpetual System

An inventory management approach that tracks the sale and purchase of inventory in real-time, providing a continuous account of inventory and cost of goods sold.

Perpetual LIFO

A method of inventory valuation where the last items acquired are the first considered sold in an ongoing, or perpetual, system.