Which of the Following Would Increase Output in the Short

question 110

Multiple Choice

Which of the following would increase output in the short run?

• A)an increase in stock prices makes people feel wealthier
• B)government spending increases
• C)firms chose to purchase more investment goods
• D)All of the above are correct.

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Definitions:

Direct Labor Rate

The average cost per hour for labor directly involved in the production of goods or services.

Direct Labor Budget

A forecast of the labor costs directly associated with production, factoring in anticipated hourly rates and hours needed.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overheads.

Direct Labor Rate

The cost per hour for direct labor, typically used in calculating the total direct labor cost for a product or job.