The change in ________ is a compound effect of changes in wages per hour and changes in worker productivity.
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A. B. C. D.Explanation
Unit labor will cost more if wages increase and cost less if worker productivity increases. Both these effects are considered.
The correct answer to the question is B. unit labor costs.
Unit labor costs represent the cost of labor required to produce one unit of output. It is calculated by dividing total labor costs by the total output produced. Unit labor costs are affected by two key factors: changes in wages per hour and changes in worker productivity.
Changes in wages per hour refer to changes in the amount of money paid to workers for each hour worked. If wages increase, it will result in higher labor costs, which in turn will increase unit labor costs. Conversely, if wages decrease, unit labor costs will decrease.
Changes in worker productivity refer to changes in the efficiency and output per hour of labor. If worker productivity increases, it means that more output is being produced per hour worked. This leads to a decrease in unit labor costs because the same amount of output is being produced with less labor input. On the other hand, if worker productivity decreases, unit labor costs will increase because more labor is needed to produce the same amount of output.
The question states that the change in ________ is a compound effect of changes in wages per hour and changes in worker productivity. The missing term is filled by option B, unit labor costs. This means that the change in unit labor costs is influenced by both changes in wages per hour and changes in worker productivity. Therefore, option B is the correct answer.