When the Prevailing Market Wage Is Above Equilibrium

question 105

Multiple Choice

When the prevailing market wage is above equilibrium:

• A) there is no unemployment.
• B) there is a surplus of labor.
• C) the quantity of labor demanded is higher than the quantity supplied.
• D) All of these are true.

Understand the calculations involved in determining net float and the implications for cash management.

Understand methods to decrease a firm’s collection time.

Recognize the best cash management practices for firms with multiple offices and national customers.

Identify various motives for holding cash and the associated benefits.