Figure 3.2 -In Figure 3.2, Assume That We Have Labor Market Demand

question 82

Multiple Choice

Figure 3.2

-In Figure 3.2, assume that we have labor market demand and supply curves of D₁ and S₂, respectively. What is the equilibrium wage and employment level?

• A) $5; 30 workers
• B) $10; 20 workers
• C) $10; 40 workers
• D) $15; 30 workers
• E) $5; 20 workers

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Definitions:

Efficiency Variance

A measure in cost accounting used to assess the difference between the actual input used in production and the standard input expected to be used, for cost control purposes.

Direct Labour Hour

A measure of labor directly involved in manufacturing or production, calculated by the amount of time workers spend on specific tasks.

Fixed Overhead

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Budget Variance

The difference between the budgeted or planned amounts and the actual amounts incurred.