The Own Wage Elasticity

question 12

Multiple Choice

The own wage elasticity

• A) is the percentage response in labor supply induced by a 1% impulse in the wage.
• B) is the effect of a 1% increase in wage on the decision to participate in the labor force.
• C) is always negative.
• D) is always positive.
• E) is always one.

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Definitions:

Manufacturing Overhead

All indirect manufacturing costs, including but not limited to utilities, rent, and salaries of supervisors.

Direct Materials Cost

The expense incurred for raw materials that are directly traceable to the production of specific goods or services.

Raw Materials Inventory

The total cost of all the parts and materials that are held in stock by a company and are used in the production process.

Cost of Goods Manufactured

The total cost incurred to produce products that were completed during a specific accounting period.