Use the Following to Answer Question

question 2

Multiple Choice

Use the following to answer question:
Figure: Equilibrium in the Labor Market
-(Figure: Equilibrium in the Labor Market) Use Figure: Equilibrium in the Labor Market.In the figure,an increase in the productivity of labor,when everything else stays the same,will lead to a(n) _____ in the equilibrium quantity of labor and a(n) _____ in the equilibrium price of labor.

• A)decrease;increase
• B)increase;decrease
• C)decrease;decrease
• D)increase;increase

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Definitions:

Preferred Stock

A class of stock that entitles holders to fixed dividend payments before any distributions are made to common stockholders.

Common Stock

Represents the shares of a company that are owned by its shareholders, which entitle them to vote at shareholder meetings and to receive dividends.

Dividends

Payments made by a corporation to its shareholder members, distributing profits.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company, reducing the amount of outstanding stock on the open market.