Economists Have Proposed Which of the Following as Contributing to the Rising

question 124

Multiple Choice

Economists have proposed which of the following as contributing to the rising wage gap between skilled and unskilled workers?

• A)decreasing international trade
• B)technological improvements in capital stocks
• C)the increasing role of unions in setting skilled wage scales
• D)skilled workers are doing jobs that are increasingly dangerous

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Definitions:

Conversion Costs

Costs incurred to convert raw materials into finished goods, including direct labor and manufacturing overhead.

Prime Costs

The combination of direct materials and direct labor costs that are directly attributable to the production of goods.

Nonmanufacturing Cost

Expenses not directly involved in the production of goods, such as selling, administration, and other overhead costs.

Factory Overhead

All indirect costs associated with manufacturing, such as salaries of supervisors, maintenance, and utilities, not directly tied to the production of goods.