In the Mid-To-Late 2000s, a Regional Wage Premium Developed Within

question 25

Multiple Choice

In the mid-to-late 2000s, a regional wage premium developed within the Canadian labour market. Which of the following statements is false?

• A) In the long run, one expected the wage premium to dissipate through regional migration.
• B) The wage premium was related to the situations in the manufacturing sector and the energy sectors of the Canadian economy.
• C) The demand for labour expanded more in Alberta than in Ontario.
• D) The supply of labour contracted in Alberta, helping to push up the wage.
• E) Wages rose in Alberta relative to Ontario

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Definitions:

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how efficiently assets are used to generate profit.

Net Income

The total profit of a business after all expenses, taxes, and costs have been subtracted from total revenues.

Asset Turnover

A measure of how effectively a business is using its assets to generate sales.

Return on Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, demonstrating the profitability of a company from the perspectives of its equity investors.