Labor Productivity Increases When

question 167

Multiple Choice

Labor productivity increases when

• A) the population increases.
• B) output increases even if the labor force has decreased.
• C) output increases at the same rate as the labor force increases.
• D) output increases faster than population increases.

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Definitions:

Machine-hour

A unit of measure representing the operation of a machine for one hour, often used to allocate manufacturing overhead.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the buffer amount that sales can decrease before reaching a loss.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.

Sales

The total revenue generated from goods or services sold by a company within a specific period.