Which of the Following Would Increase Output in the Short

question 110

Multiple Choice

Which of the following would increase output in the short run?

• A)an increase in stock prices makes people feel wealthier
• B)government spending increases
• C)firms chose to purchase more investment goods
• D)All of the above are correct.

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Definitions:

Direct Labor

The workforce directly involved in manufacturing or producing goods, whose wages are considered a variable cost.

Factory Overhead

All indirect costs associated with operating a factory, excluding direct materials and direct labor costs.

Process Manufacturers

Companies involved in production where raw materials are transformed through a chemical or mechanical process into a finished product.

Continuous Flow

A process in manufacturing that involves the constant movement of goods through the production system without any stoppages.