If, at a Particular Wage Rate in a Competitive Market

question 71

Multiple Choice

If, at a particular wage rate in a competitive market, the quantity demanded of labor exceeds the quantity supplied of labor, then

• A)the supply curve will shift to the left, the demand curve will shift to the right, and the surplus of labor will be eliminated.
• B)since wages are so low, the quantity supplied of workers will decrease further, and the quantity demanded will increase further.
• C)some workers will begin to demand higher wages, as a result, employers will begin to hire more workers.
• D)the supply curve will shift to the right, the demand curve will shift to the left, and the shortage of labor will be eliminated.
• E)none of the above

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Definitions:

Composite Depreciation

A depreciation method that applies a single depreciation rate to a group of assets with different lives, treating them as a single asset.

Group Depreciation

A method of depreciation where a group of assets with similar life spans is depreciated as a single asset.

Depreciable Assets

Assets subject to wear and tear or obsolescence, which are systematically decreased in value over their useful life for accounting purposes.

Alternative Depreciation Method

A depreciation method different from the straight-line depreciation, allowing for a higher depreciation charge in the earlier years of an asset's life.