13.3 Explaining the Existence of Unemployment

question 43

Multiple Choice

13.3 Explaining the Existence of Unemployment
-When a firm pays higher wages for its workers to improve workers' productivity, the firm pays

• A) sticky wages.
• B) flexible wages.
• C) efficiency wages.
• D) minimum wages.

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.

Variable Manufacturing Overhead

Costs in the manufacturing process that change with the level of production output, such as utilities and materials used in production.

Last Month

Refers to the period of time from the first to the last day of the month immediately preceding the current month.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce goods and the standard hours expected, multiplied by the variable overhead rate.