Two Workers Are Employed in the Same Job by the Same

question 30

Multiple Choice

Two workers are employed in the same job by the same firm; however, they are paid different wage rates. This could be explained by differences in

• A) the income effect
• B) the price of the firm's output
• C) their marginal products due to differences in ability
• D) working conditions
• E) risk

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Definitions:

Inventory Turnover

A ratio indicating how many times a company’s inventory is sold and replaced over a specific period.

ACP

Average Collection Period, indicating the average number of days it takes for a company to collect its receivables.

Pledging Receivables

Pledging receivables involves using the money owed to a company by its customers as collateral for a loan.

Effective Cost

Effective cost refers to the total cost of a financing option when all charges, fees, and interest payments are taken into account.