When the Wage Paid to Workers in Job a Increases

question 115

Multiple Choice

When the wage paid to workers in job A increases relative to the wage in job B,then,ceteris paribus,the

• A)net advantage of job B will increase relative to job A.
• B)non-monetary advantages of job A will increase.
• C)non-monetary advantages of job B will decrease.
• D)net advantage of job A will increase relative to job B.
• E)monetary advantage of job A will increase,but not its net advantage.

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Definitions:

Preferred Stock

Stock with dividend priority over common stock, normally with a fixed dividend rate, often without voting rights.

Common Stock Dividends

Dividends that are paid to holders of a company's common stock, often from the company's profits.

Dividend Increases

An action by a company to increase the amount of dividends paid out to shareholders, usually as a result of increased profitability.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, as a reward for investing their capital.