All Else Constant,an Increase in Productivity Has the Effect of Causing

question 46

Multiple Choice

All else constant,an increase in productivity has the effect of causing:

• A)the marginal product of labor to increase and no effect on the average product of labor.
• B)the average product of labor to increase and no effect on the marginal product of labor.
• C)the marginal product of labor to increase and the average product of labor to decrease.
• D)both the marginal and average product of labor to increase.

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Definitions:

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting period, known as Last-In, First-Out.

FIFO Method

An inventory valuation method (First In, First Out) where the oldest items of inventory are recorded as sold first, with costs of the earliest goods purchased being the first to be recognized in determining cost of sales.

Inventory Valuation

The method or process of calculating the cost or value of inventory held by a business.

Common Stock

A type of security that represents ownership in a corporation, where shareholders are entitled to a portion of the company's profits through dividends and voting rights on corporate matters.