Suppose Both Wages and Employment Increase

question 52

Multiple Choice

Suppose both wages and employment increase. These changes most likely were caused by:

• A) an increase in labor demand.
• B) an increase in labor supply.
• C) a decrease in labor demand.
• D) a decrease in labor supply.

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor.

Inventory Period

The average time it takes for a company to turn its inventory into sales, reflecting the efficiency of its inventory management.

Cost of Goods Sold

The costs directly connected to the manufacture of goods a firm sells, comprising materials and labor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.