Assuming That Labor Is the Only Variable Input, If Society

question 194

Multiple Choice

Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.

• A) more than; will
• B) less than; will
• C) more than; will not
• D) equal to what; will not

---

Definitions:

Direct Financing Lease

A lease arrangement in which the lessor purchases an asset for the lessee and earns interest income over the lease term while the lessee uses the asset.

Residual Value

The projected worth of an asset upon reaching the conclusion of its serviceable duration.

Present Value Factors

Numeric factors used in financial calculations to determine the present value of a future amount by accounting for time value of money.