On Average, Out of Every Dollar Spent by a Company

question 5

Multiple Choice

On average, out of every dollar spent by a company on employee compensation, more than ________ cents goes to employee benefits.

• A) 75
• B) 30
• C) 50
• D) 15
• E) 20

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, satisfying the same consumer needs or desires.

Complementary Goods

Products or services that are used together, where the use or consumption of one enhances the value of the other.

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.

Complement

A good whose demand increases when the price of another good decreases. Examples include a parking lot and shopping mall or a hamburger and a hamburger bun.