The Wages of House Painters Will Tend to Rise When

question 208

Multiple Choice

The wages of house painters will tend to rise when

• A) more people recognize that house painters have very low incomes.
• B) the alternative earning opportunities of house painters improve.
• C) house painters can no longer find good paying alternatives for their labor.
• D) unemployment in the economy is high and there are few alternative jobs available for house painters.

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Definitions:

Absorption Cost Pricing

A pricing method that includes all manufacturing costs (fixed and variable) in the cost of a product, plus a markup for profit.

Mark-Up Percentage

The percentage added to the cost of goods to cover overhead and profit, determining the selling price of a product.

Variable Manufacturing Cost

Costs that change with the level of production output, such as raw materials and direct labor, contrasted with fixed costs.

Variable Cost Pricing

Setting prices based on the variable costs of producing a product, ignoring fixed costs.