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Production cost fell due to decrease in wage rate. This is a matter of which dimension?

Answer and explanation

Correct answer: Economic dimension

Direct answer: Option A, the economic dimension. Wage rate means the payment made for labour. When the wage rate decreases, the labour cost of producing goods decreases, so total production cost may fall. Wages are connected with income, employment and business costs, all of which are economic matters. Option A is correct because the stated effect is a change in production cost caused by a change in wages. Option B, social dimension, deals with culture, customs, population and lifestyle, not the direct calculation of labour cost. Option C, technological dimension, concerns machines, software, inventions and production techniques; no technology has changed here. Option D, political dimension, concerns government, policies and political conditions; no political event is mentioned. A useful exam cue is: wages, prices, income, costs and employment usually belong to the economic dimension.

Related tags

Business Environment Dimensions Economic Wage CostDimensions Of Business EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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