Suppose the Wage Rate in the Labor Market Is $15

question 210

Multiple Choice

Suppose the wage rate in the labor market is $15 and the productivity of workers increases, which of the following statements is incorrect?

• A) The labor demand curve shifts to the right.
• B) If wages are flexible, there will be an increase in wages.
• C) If wages are sticky, there will be a shortage in the labor market.
• D) If wages are sticky, there will be a surplus in the labor market.

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment (PP&E) minus any accumulated depreciation, representing the actual value of the company's fixed assets.

Sales

The process of offering goods or services to obtain money or other forms of payment.

Net Working Capital

The determination of a business's immediate solvency by computing the difference between its current assets and current liabilities.

Total Assets

This financial metric represents the sum of all resources owned by an entity, valued in monetary terms.