If the Demand for a Certain Type of Labor Is

question 67

Multiple Choice

If the demand for a certain type of labor is elastic, a(n) _______ in its price will lead to a(n) _______ in total spending on that type of labor by firms.

• A) increase; decrease
• B) decrease; decrease
• C) increase; increase
• D) decrease; no change

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Definitions:

Accrued Revenues

Revenues for services performed but not yet received in cash or recorded.

Received

Typically refers to the acknowledgement of having gotten something, such as goods or payments, within a business context.

Recognized

In accounting, recognized refers to the formal acknowledgment in financial statements that a transaction or event has impacted the entity's financial position or performance.

Book Value

The net value of a company's assets as found on its balance sheet, and is calculated by subtracting liabilities from the value of assets.