Choose the Statement That Is Correct

question 107

Multiple Choice

Choose the statement that is correct.

• A)Labour services are the physical and mental work effort that people supply to produce goods and services.
• B)A labour market is a collection of people and firms who trade labour services.
• C)The price of labour services is the wage rate.
• D)Most labour services are traded on a contract, called a job.
• E)all of the above.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold on the open market, determined by supply and demand forces.

Profit-Maximizing Firm

A company that operates with the objective of making the highest possible profit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Accounting Profits

The total revenue of a company minus the explicit costs, not including opportunity costs, showing the financial performance.