The Demand for Labor Is Likely to Increase When

question 45

Multiple Choice

The demand for labor is likely to increase when

• A)the supply of the good it produces falls
• B)the demand for the good it produces rises
• C)the supply of the good it produces rises
• D)the demand for the good it produces falls
• E)the real wage rate rises

---

Definitions:

Price Index

A statistical measurement that shows changes in the price level of goods and services over time, indicating inflation or deflation.

Inventory Value

The total cost or market value of all the goods and materials held by a company intended for sale.

Retail Inventory Method

An accounting method used by retailers to estimate inventory value by converting the retail price of inventory to a cost basis using a cost-to-retail percentage.

Gross Profit Method

A method used in accounting to estimate the value of a company's inventory by applying the gross margin ratio to net sales.