Wages for Workers Producing IPods and Similar Products Will Rise

question 165

Multiple Choice

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next yearʹs market for iPods. You predict that the major effect will be that the

• A) demand curve for an iPod will shift rightward.
• B) supply curve for an iPod will shift rightward.
• C) supply curve for an iPod will shift leftward.
• D) demand curve for an iPod will shift leftward.

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Definitions:

Unearned Ticket Revenue

Revenue received from tickets sold for future events, recognized as a liability until the service is performed or event takes place.

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Current Liability

Financial obligations a company owes and is expected to pay within a year.