Improvements in Labor Productivity

question 19

Multiple Choice

Improvements in labor productivity

• A) affect the level of wages, but do not affect the rate of economic growth.
• B) affect the level of profit, but do not affect the rate of economic growth.
• C) hinder economic growth, because they cause unemployment.
• D) contribute to economic growth.

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Definitions:

Personnel Costs

Expenses related to the compensation of employees, including wages, salaries, bonuses, benefits, and payroll taxes.

Information Technology

The use of computers, software, networks, and other digital devices to store, process, retrieve, and transmit information.

Weighted-Average Method

A method of costing inventory that allocates the mean cost of available goods for sale to the ending inventory and the cost of goods sold.

Assembly Department

A part of a manufacturing firm where parts are put together to create finished goods.