The "One and a Half" Rule Is a Theory That

question 1

Multiple Choice

The "one and a half" rule is a theory that states

• A) public relations professionals are one and a half times as smart as journalists and should therefore be paid one and a half times as much
• B) audiences attach more credibility to paid advertising than conventional news coverage by that ratio)
• C) audiences attach more credibility to conventional news coverage than paid advertising by that ratio)
• D) it takes more money to reach an audience through print media than through broadcast media by that ratio)
• E) it takes more money to reach an audience through broadcast media than through print media by that ratio)

Understand the concept of economic rents and their response to market supply and demand changes.

Analyze the impact of wage adjustments on market equilibrium and economic rents for workers.

Examine the role of unions and their effects on wages and employment levels.

Determine the equilibrium wage and employment levels in competitive and monopsonistic labor markets.

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Definitions:

Payroll Accrual

The recording of the earnings of employees that have been earned but not yet paid, typically used to accurately represent a company's liabilities.

Annual Payroll

The total amount of wages, salaries, bonuses, and other compensation paid by a business to its employees over a year.

Business Days

Days of the week excluding weekends and public holidays, typically Monday through Friday, when business operations are conducted.

Fixed Charge Coverage

A financial metric evaluating how well a company can pay off its fixed expenses, like interest and leases, using its earnings before interest, taxes, depreciation, and amortization (EBITDA).