If Productivity of an Economy Increases Then

question 122

Multiple Choice

If productivity of an economy increases then:

• A)​the amount of goods and services produced by a worker per hour increases.
• B)​the labor force increases.
• C)​the real GDP per capita decreases.
• D)​the labor force decreases.

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Definitions:

Selling and Administrative Expenses

Costs not directly linked to the production process, including sales, marketing, management salaries, and office expenses.

Selling Price

The amount of money charged for a product or service, or the sum the consumer believes it is worth.

Absorption Costing

A pricing methodology that sums up all production-related costs, from raw materials and labor to both flexible and fixed overheads, in calculating the expense of a product.

Cost-plus Pricing

A pricing approach that sets the selling price by adding a predetermined markup to the cost per unit of a product.