Assume the Following Conditions Hold: (1) the Demand for Every

question 158

Multiple Choice

Assume the following conditions hold: (1) the demand for every type of labor is the same, (2) there are no special nonpecuniary aspects to any job, (3) all labor is ultimately homogeneous and can costlessly be trained for different types of employment, (4) all labor is mobile at zero cost. Given these conditions,

• A)wage rates will be the same in most labor markets.
• B)the demand for labor will be less in some labor markets than in others.
• C)wage rates will be the same in all labor markets.
• D)wage rates will be the same in very few labor markets.

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Definitions:

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.

Indirect Method

A method for preparing the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate operating cash flows.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.

Issuance

The process of distributing new securities, such as stocks or bonds, to investors, often to raise capital for a corporation.