Which of the Following Would Not Be Considered a Supply

question 84

Multiple Choice

Which of the following would not be considered a supply shock?

• A) a change in the price of imported oil
• B) frost damage to the orange crop
• C) a change in the level of education of the average worker
• D) an increase in the level of government spending

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Definitions:

Direct Labor-Hours

The cumulative hours employees spend directly participating in the manufacturing process.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with production volume, such as utilities or raw materials.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the period begins based on estimated overhead costs and an allocation base.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services.