In the Past 60 Years or So, Labor's Share of GDP

question 90

Multiple Choice

In the past 60 years or so, labor's share of GDP in the United States ________.

• A) has been roughly two-thirds.
• B) has been exactly 50 percent.
• C) has been roughly one-third.
• D) has been equal to capital's income share.
• E) has risen sharply.

---

Definitions:

Adjusted Cost

The cost of an asset after accounting for adjustments such as depreciation, improvements, or damage.

Estimated Manufacturing Overhead

Projected costs that a company expects to incur for manufacturing overhead, excluding direct labor and materials.

Applied Overhead

The portion of overhead costs allocated to specific products or cost objects based on the predetermined overhead rate.

Actual Manufacturing Overhead

Refers to the actual incurred costs that are indirectly associated with the manufacturing of a product, including costs like utilities and maintenance for manufacturing facilities.