Use the Following to Answer Questions

question 173

Multiple Choice

Use the following to answer questions :
Figure: Technological Progress and Productivity Growth
-(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from the deterioration of the nation's infrastructure over time?

• A)A to B
• B)B to C
• C)C to B
• D)B to A

Evaluate the impact of rent control laws on the market.

Calculate the effects of a per-unit tax on market equilibrium, including the size of the tax and its distribution between buyers and sellers.

Understand the impact of a binding minimum wage on a labor market using supply and demand diagrams.

Analyze the effect of price elasticity of demand and supply on the burden of a tax.

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Definitions:

Direct Labor-Hours

A measure of the labor directly involved in manufacturing a product, expressed in hours.

Predetermined Overhead Rate

A pre-determined rate for distributing overhead expenses to products or job orders, calculated prior to the beginning of the period using projected costs and estimated levels of activity.

Direct Labor-Hour

A direct labor-hour is a unit of measurement for the amount of work performed by employees who are directly involved in the production of goods or services.

Fixed Manufacturing Overhead

The costs that do not vary with the level of production or sales, such as salaries of managers, rent of the factory, and depreciation of manufacturing equipment.