If Labor Costs Are 60 Percent of Production Costs,then a 15

question 70

Multiple Choice

If labor costs are 60 percent of production costs,then a 15 percent increase in wage rates would increase production costs by:

• A) 60 percent.
• B) 45 percent.
• C) 15 percent.
• D) 9 percent.
• If total production costs are $100,labor's share is $60.If wages go up 15 percent,the wage bill becomes $60 * 1.15 = $69.Total production costs rise to $109,which is a 9 percent increase.

---

Definitions:

Matched Pairs

A study design in which each subject is paired with a similar subject, usually to control for certain variables.

Independent Samples

Two or more groups of data that are not related or do not influence each other, often used in comparative experiments.

Nonrandom Samples

Nonrandom samples are samples that are not selected using random methods, which may result in a biased representation of the overall population.

Alternative Hypothesis

It proposes that there is a statistically significant relationship between variables, opposing the null hypothesis.