The Wage Rate

question 242

Multiple Choice

The wage rate.is the price of a unit of labor.What happens to the supply of labor if the wage rate increases?

• A)It increases.
• B)It decreases.
• C)It does not change.
• D)Uncertain-economic theory has no answer to this question.

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Definitions:

Annuity

A finance-related product designed to issue a predetermined series of payouts to an individual, typically aimed at serving as an income source for retirement.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time, used in capital budgeting to assess profitability of investments.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several different investments.

Straight-Line Depreciation

A method of allocating an asset's cost evenly throughout its useful life.