Suppose a Change in Technology Increases the Marginal Product of Labor

question 1

Multiple Choice

Suppose a change in technology increases the marginal product of labor. The result is

• A) a downward movement along the demand for labor curve.
• B) a rightward shift in the demand for labor curve.
• C) a leftward shift in the demand for labor curve.
• D) an upward movement along the demand for labor curve.

---

Definitions:

Raw Materials

The basic materials that are used in the production process of goods, prior to being processed or transformed.

Direct Labor Budget

A detailed plan that shows the amount of direct labor hours required to meet production needs and the associated costs.

Direct Labor-Hours

Hours attributed to workers who are directly involved in the creation or assembly of a company's products.

Budgeted Production

The planned level of production output, determined as part of a company's budgeting process to meet expected demand and inventory requirements.