Countries in Which Wages Adjust Rapidly to Changes in the Supply

question 37

Multiple Choice

Countries in which wages adjust rapidly to changes in the supply and demand for labor are likely to have ________ sacrifice ratio.

• A)an infinite
• B)a high
• C)a low
• D)a negative

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Definitions:

Direct Labor Wage Rate

The rate of pay for workers who are directly involved in the production of goods or the provision of services.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Selling and Admin. Expense

Costs that are not directly tied to the production of goods or services but are necessary for selling products and managing the business.

Variable Expense

Costs that vary directly with the level of production or sales volume, such as raw materials and commission fees.