The Percentage of Workers Whose Wages Are Set by Explicit

question 207

Multiple Choice

The percentage of workers whose wages are set by explicit contracts increases. This should

• A) make it more difficult for the labor market to reach an equilibrium after a change in the demand for labor.
• B) make it easier for the labor market to reach an equilibrium after a change in the demand for labor.
• C) have no impact on the movement of the labor market toward equilibrium after a change in the demand for labor.
• D) cause the labor market to always be at an equilibrium, even if there is a change in the demand for labor.

---

Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Share Split

A business move where a company splits its current shares into additional ones to increase the shares' marketability.

Share Price

The current market price of a single share of a company's stock.

Reverse Stock Split

A corporate action in which a company decreases the number of its outstanding shares to increase the share price without changing the company's market capitalization.