An increase in labor hours will lead to A: a shift of the aggregate production function but no movement along it. B: a movement along the aggregate production function but no shift in it. C: both a movement along and a shift in the aggregate production function. D: neither a movement along nor a shift in the aggregate production function.

In the circular-flow diagram, A: firms own the factors of production. B: the factors of production are labor, land, and capital. C: the factors of production are also called “output.” D: firms produce output using goods and services.

An organization has found that there is a linear relationship between production volume and production costs.It has found that a production volume of 800 units corresponds to production of $10,000 and that a production volume of 1,000 units corresponds to production costs of $12,000.What are the production costs for a production volume of 2,000 units? A: $12,000 B: $20,000 C: $22,000 D: $32,000

Which of the following costs belongs to Selling and Administrative Costs? A: Direct Labor Cost B: Direct Material Cost C: Depreciation of manufacturing equipment D: Sales Commissions

An advance in technology will A: not shift the production function but will lead to a movement down along the production function. B: shift the production function downward. C: not shift the production function but will lead to a movement up along the production function. D: shift the production function upward.