Safiya Works at a Factory for $15 an Hour and Typically

question 48

Multiple Choice

Safiya works at a factory for $15 an hour and typically works 40 hours a week. Safiya gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at her new wage. Safiya's response to the pay increase demonstrates that the _______ effect outweighs the _______ effect.

• A)income; prices
• B)price; income
• C)income; substitution
• D)labor; price

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Definitions:

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net assets, representing the company's reputation, customer base, and other non-quantifiable assets.

Net Assets

The total assets of a company minus its total liabilities, representing the shareholders' equity.

Reconciling Item

A financial entry that adjusts discrepancies between two accounts or statements to ensure they balance.

Technological Dependency

The reliance on technology and technological systems for the operational and strategic management of an organization.