Which of the Following Is Specifically Designed to Increase the Long-Run

question 169

Multiple Choice

Which of the following is specifically designed to increase the long-run aggregate supply curve?

• A) raising marginal tax rates on income
• B) developing new technologies
• C) increasing government spending on welfare
• D) increasing taxes on entrepreneurs

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Definitions:

Standard Cost Card

A document that details the standard quantities and costs of materials, labor, and overhead for a specific product.

Fixed Manufacturing Overhead

These are the production costs that do not change with the volume of production, such as rent, salaries, and insurance.

Direct Labor Costs

Expenses that can be directly traced to the production of goods or services, including wages of workers who are physically involved in creating a product.

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to apply overhead to products or services.