Which of the Following Can Cause an Increase in Real

question 102

Multiple Choice

Which of the following can cause an increase in real wages?

• A)a technological advance that increases the quality of the capital goods used by labor.
• B)decreased demand for labor.
• C)an increase in the price level.
• D)a technological decline that decreases the quality of the capital goods used by labor.

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Definitions:

Return On Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring efficiency in using assets to generate earnings.

Earnings Before Interest And Taxes

A financial metric indicating the profitability of a business before accounting for interest and tax expenses.

Excess Capacity

The situation in which a facility or operation can produce more than is being demanded by its customers.

Distribution Sites

Locations where goods are stored and distributed to retailers or directly to customers.