If There Is a Shortage of Farm Laborers,we Would Expect

question 60

Multiple Choice

If there is a shortage of farm laborers,we would expect

• A)the wage of farm laborers to increase.
• B)the wage of farm laborers to decrease.
• C)the price of farm commodities to decrease.
• D)a decrease in the demand for substitutes for farm labor.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.

Information Content

The value of data provided to investors or decision-makers, particularly how much it can influence the assessment or future performance of an asset or company.

Signalling Hypothesis

The idea that actions by companies, such as dividend announcements or stock splits, send signals to investors about the firm's future prospects.

Dividend Policy

Dividend policy is a company's strategy or guidelines designed to decide the amount to be paid out to shareholders in the form of dividends.