Which of the Following Is True

question 27

Multiple Choice

Which of the following is true?

• A) If the consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good.
• B) If the production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good.
• C) If the production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good.
• D) If the consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.

Comprehend the components and requirements of the Fair Labor Standards Act (FLSA) including minimum wage, overtime pay, and child labor laws.

Identify and understand the policies and legal frameworks around pay structures, including comparable-worth policy, merit pay, and pay levels.

Understand the significance and impact of the Consumer Price Index (CPI) on wage determination and labor market trends.

Recognize the influence of product markets and labor markets on organizational pay decisions.

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Definitions:

Value-Added Costs

Expenses incurred by a company that increase the worth of a product or service to a customer, thereby enhancing the product's or service's selling price.

Non-Value-Added Costs

Expenses that do not contribute to adding value or increasing the worth of a product or service from a customer's perspective.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished goods.

Machine Hours

A measure of production output or activity based on the number of hours machinery is in operation, used in cost accounting to allocate expenses to products.