An Increase in the Demand for Peanuts Will Affect the Labor

question 122

Multiple Choice

An increase in the demand for peanuts will affect the labor market for peanut farm workers. We would expect to see a(n) _______ in labor _______, resulting in _______ wages.

• A)increase; demand; higher
• B)increase; supply; higher
• C)decrease; demand; lower
• D)decrease; supply; lower

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Definitions:

Trade Credit

An agreement in which a customer can purchase goods or services on account, paying the supplier at a later scheduled date.

Capital Budget

The process of planning and managing a company's long-term investments in major assets or projects.

Surplus Cash

Excess cash held by a company over and above its operating needs and plans, which can be invested or returned to shareholders.

Free Trade Credit

An arrangement where buyers can purchase goods and pay for them later without interest.