In the Absence of Technological Progress,an Increase in the Saving

question 38

Multiple Choice

In the absence of technological progress,an increase in the saving rate will cause which of the following?

• A)increase temporarily the growth of output per worker
• B)increase the steady state growth of output per worker
• C)decrease temporarily the growth of output per worker
• D)decrease the steady state growth of output per worker
• E) have an ambiguous effect on the growth of output per worker

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Definitions:

Labour Time Standard

A benchmark or norm established for the amount of time required to perform a specific task or activity under normal working conditions.

Direct Material Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost.

Direct Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard wages paid for that labor.

Direct Labour Efficiency Variance

A measure used in management accounting to assess the difference between the actual hours worked and the standard hours expected to produce a certain level of output.