Wage Rigidity

question 11

Multiple Choice

Wage rigidity:

• A)forces labour demand to equal labour supply.
• B)is caused by sectoral shifts.
• C)prevents labour demand and labour supply from reaching the equilibrium level.
• D)increases the rate of job finding.

Recognize the accounting treatment of natural resources and the depletion method.

Understand the rules for capitalizing or expensing costs related to the acquisition, development, and maintenance of assets.

Identify the financial reporting requirements for the disposal and impairment of long-lived assets.

Understand the concept of the fixed asset turnover ratio and how business decisions impact it.

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Definitions:

Generates Revenues

Activities or assets within an organization that contribute to earning income from sales of goods or services.

Incurs Costs

To have expenses or to bear the expense of an action or operation.

Ratio Scale

A quantitative scale where there is a true zero and equal intervals between neighboring points, allowing for the measurement of absolute quantities and the comparison of ratios.

Measurement

Measurement involves determining the size, quantity, or amount of something, typically by comparing it to a standard unit.