The Motor Vehicle Builders' Union Bargained for Higher Wages and More

question 40

Multiple Choice

The Motor Vehicle Builders' Union bargained for higher wages and more benefits for its members. As a result of the higher wages and increased benefits,
i. the quantity of new cars supplied decreases.
ii. the supply of new cars decreases.
iii. the supply of new cars increases.

• A) only i
• B) only ii
• C) only iii
• D) both i and ii
• E) Neither i, ii nor iii is correct.

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Definitions:

Financial Statement Analysis

The process of examining and reviewing a company's financial statements to make informed business decisions.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Liquidity

A measure of the ease with which an asset can be converted into cash without significantly affecting its value.