Which of the Following Statements Is Correct

question 286

Multiple Choice

Which of the following statements is correct?

• A)Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages.
• B)Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link.
• C)Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link.
• D)Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.

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Definitions:

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation ratio of a company's current share price compared to its per-share earnings.

Market Price

The present trading value for assets or services within the scope of a commercial market.

Shares Of Stock

Units of ownership interest in a corporation or financial asset, giving shareholders a proportion of the corporation's assets and profits.

Profit Margin

A financial metric representing the percentage of revenue that remains as profit after all expenses are deducted.