What Could a Reduction in LRAS Due to a Reduction

question 70

Multiple Choice

What could a reduction in LRAS due to a reduction in the working-age population in a country potentially be prevented or offset by?

• A)decreasing capital investment
• B)increasing business taxes
• C)taking young workers out of school and putting them immediately to work
• D)increasing the training and education levels of the workforce

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Definitions:

Standard Cost System

An accounting framework where standard costs are used for cost control and decision making, typically involving the setting of predetermined costs for products and services.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard labor hours expected, multiplied by the labor rate.

Work in Process

Goods partially completed during the manufacturing process, not yet ready for sale.

Raw Materials

Fundamental substances that are transformed through manufacturing processes into a final product, essential components in production.