Which of the Following Would Be an Expected Result of Substantially

question 91

Multiple Choice

Which of the following would be an expected result of substantially higher wages in the U.S. automobile industry?

• A) an increase in the real wages of workers outside the industry
• B) an increase in the price of automobiles produced in the United States
• C) a reduction in the demand for foreign-produced automobiles
• D) an increase in the profit rate of U.S. automobile producers

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Definitions:

Market

A place or platform where buyers and sellers meet to trade goods, services, or financial instruments.

Lower-of-cost-or-market

An accounting principle that requires inventory to be recorded at the lower of its original cost or current market value, ensuring assets are not overstated on the balance sheet.

Balance Sheet

A documentation of a company’s financial position, showcasing assets, liabilities, and the equity held by shareholders at a particular instance.

Lower-of-cost-or-market

An accounting principle that valuables inventory at the lower cost between the original purchase cost and its current market price.