Prices and Wages Tend to Be

question 108

Multiple Choice

Prices and wages tend to be

• A)flexible both upward and downward.
• B)inflexible both upward and downward.
• C)flexible downward but inflexible upward.
• D)flexible upward but inflexible downward.

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Definitions:

Payback Method

A financial analysis tool used to determine the time required to recover the cost of an investment.

Future Cash Flows

Estimated future financial transactions that involve the inflow or outflow of money over a period of time.

Capital Cost Allowance

Refers to the depreciation expense that a company can claim for tax purposes on tangible and intangible assets over their useful life.

Tax Shield

The reduction in income taxes that results from taking allowable deductions from taxable income.