Suppose Bad Weather in Florida Unexpectedly Results in a Much

question 88

Multiple Choice

Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. This would tend to cause the labor supply curve for citrus pickers to

• A) shift to the right, causing the labor demand curve to shift to the right.
• B) shift to the left, causing the labor demand curve to shift to the left.
• C) remain unchanged, and the wage rate would tend to increase.
• D) remain unchanged, and the wage rate would tend to decrease.

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Definitions:

Reverse Stock Split

A corporate action where a company decreases the number of its outstanding shares to increase the share price without altering the company's market capitalization.

Par Value

The nominal or face value of a bond, share, or other financial instruments, which does not necessarily reflect its market value.

Debt-Equity Ratio

The debt-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess financial leverage.

Residual Dividend Policy

A strategy where a company pays dividends out of the residual or leftover equity only after all project capital requirements and operational expenses are met.