Assume That Markets Clear

question 140

Multiple Choice

Assume that markets clear.If in the labor market there is

• A) an excess supply of labor,wages will rise
• B) an excess demand for labor,wages will fall
• C) an excess demand for labor,wages will rise
• D) an excess supply of labor,wages stay constant
• E) a decline in labor demand,wages will rise

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Definitions:

Unamortized Discount

The portion of a bond issuance discount that has not yet been expensed to interest over the bond’s life.

Journal Entry

A record in accounting that notes the details of a financial transaction.

Face Value

The nominal value of a security stated by the issuer, which is the amount to be repaid at maturity in the case of a bond or the value represented by each share of stock.

Retired Bonds

Bonds that have been paid off or bought back by the issuer before or at maturity, effectively removing them from existence and relieving the issuer of further obligations.