Workland Has a Population of 10,000,of Whom 7,000 Work 8

question 19

Multiple Choice

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

• A)Workland has higher productivity and higher real GDP per person than Laborland.
• B)Workland has higher productivity but lower real GDP per person than Laborland.
• C)Workland has lower productivity but higher real GDP per person than Laborland.
• D)Workland has lower productivity and lower real GDP per person than Laborland.

Apply the variable cost concept in setting prices and calculating desired profits.

Utilize the total cost concept for product pricing and understand its distinction from the variable cost concept.

Identify the profitability of products using contribution margin analysis and the theory of constraints.

Understand the application of activity-based costing in determining product costs and profitability.

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Definitions:

Kelley's Covariation

A theory proposed by Harold Kelley that suggests an individual determines the cause of an event by considering whether the observed behavior covaries or changes across time, place, or actors.

Attribution Theory

A psychological theory focused on how individuals interpret and understand their own and others' behaviors and actions by attributing them to internal or external causes.

Permanence

The state or quality of lasting or remaining unchanged indefinitely.

Attribution Theory

A psychological theory that examines how individuals infer the causes of their own and others' behaviors and events.