Which of the Following Statements About Wage Setting Is True

question 38

Multiple Choice

Which of the following statements about wage setting is true?

• A) Most workers in Australia have their wages set by collective bargaining.
• B) Most workers in Australia have their wages set by owner- managers of incorporated enterprises.
• C) Most workers in Australia have their wages set by awards.
• D) The minimum wage in Australia is about 75% of the average wage.
• E) Collective bargaining plays a more important role in Japan and most European countries than in Australia.

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Definitions:

Depreciable Equipment

Tangible assets used in production or operations that are written off over their useful lives due to wear and tear or obsolescence.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, relevant in depreciation calculations.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Payback Period

The time it takes for an investment to generate an amount of income or cash flows to recover the initial capital outlay.