Sectoral Shifts in Demand for Output

question 219

Multiple Choice

Sectoral shifts in demand for output

• A)create structural unemployment.
• B)immediately reduce unemployment.
• C)increase unemployment due to job search.
• D)do not affect demand for labor.

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Definitions:

Direct Labor-hours

The grand total of working hours by employees who directly contribute to the manufacturing pipeline.

Variable Overhead

Costs that fluctuate with production volume, such as utility expenses or materials costs, which increase or decrease as production levels change.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the predetermined rate.

Variable Manufacturing Overhead

Production costs that change in proportion to the level of production activity, including items such as indirect labor costs.