Which of the Following Statements Is True

question 150

Multiple Choice

Which of the following statements is true?

• A)A person who chooses to work at a job that pays $40,000 a year instead of a job that pays $80,000 a year is considered (by economists) to be irrational.
• B)The wage rate paid in one labor market can affect the supply of labor in another labor market.
• C)The wage rate paid in one labor market can affect (albeit indirectly) the wage rate paid in another labor market.
• D)The demand for every type of labor is always the same.
• E)b and c

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Definitions:

Cash Outflow

Money or cash disbursed by a business for various purposes like operating expenses, investment, and financing activities.

Inventory Purchase

The acquisition of goods and materials that a company intends to sell or use in production, recorded as an asset on the balance sheet until sold.

Financing Activity

Transactions and events where cash is obtained from or repaid to investors and creditors, excluding those relating to operating and investing activities.

Capital Stock

The total amount of a company's share equity including both common and preferred shares, representing the initial investment in the business.