You Own a Business That Distributes Restaurant Menus to Houses

question 231

Multiple Choice

You own a business that distributes restaurant menus to houses and apartments. You have an incentive to substitute labor for capital if the

• A) price of capital decreases.
• B) price of labor decreases.
• C) price of labor increases.
• D) marginal product of labor decreases.

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Definitions:

Investment Income

Earnings from assets acquired, such as dividends on shares or interest on bonds.

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but not controlling.

Stock Investments Account

An account used to record the purchases and sales of equity securities, such as shares of stock, that a company holds as investments.

Annually

Occurring once every year or relating to a period of one year.