Which of the Following Would Reduce the Labor Force Participation

question 129

Multiple Choice

Which of the following would reduce the labor force participation rate,all else equal?

• A)an increase in the number of people in the labor force
• B)an increase in the unemployment rate
• C)a decrease in the unemployment rate
• D)an increase in the working-age population

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, often used as a basis for allocating costs to products.

Machine-Hours

A measure of production time, reflecting the total hours that machinery is operational during a specific period.

Multiple Overhead Rate

The use of more than one overhead rate to allocate a company's indirect costs more accurately than a single overhead rate.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory, applied uniformly to all cost objects.