In Recent Years, Total Compensation to Workers Has Risen Faster

question 122

Multiple Choice

In recent years, total compensation to workers has risen faster than the take-home pay of average workers. This implies that

• A)something is wrong with the statistics on either compensation or take-home pay.
• B)fringe benefits have become a larger share of total worker compensation.
• C)direct payments have become a larger share of total worker compensation.
• D)workers' pay has been declining slightly in recent years.

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Definitions:

Net Profit Margin Percentage

A financial ratio that indicates how much of each dollar of revenues is translated into profits, calculated by dividing net profit by revenue and multiplying by 100.

Net Income

The total earnings of a company after subtracting all expenses from its total revenues, indicative of its profitability.

Sales

The overall income produced through the sale of a company's products or services.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.