All of the Following Will Increase the Demand for Labor

question 3

Multiple Choice

All of the following will increase the demand for labor by firms in an industry except

• A)an increase in the price of the product produced by the industry.
• B)a decrease in the prices of inputs that substitute for labor.
• C)an increase in the marginal product of labor resulting from technological change.
• D)an increase in the demand for the product produced by the industry.

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Definitions:

Factory Labor Costs

Expenses related to employing workers in a manufacturing setting, including wages, benefits, and related taxes.

Direct Labor Cost

The cost of wages and benefits for employees directly involved in the production of goods or services.

Work in Process Inventory

The value of materials, labor, and overhead costs for products that are partially completed in the manufacturing process.

Overapplied Overhead

A situation in cost accounting where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.