Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A) Firms usually tend to lay off workers instead of cutting wages to reduce costs.
• B) Firms usually tend to cut wages instead of laying off people to cut costs.
• C) Firms tend to increase wages in periods of contracting economic activity to boost morale.
• D) Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity.

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, a calculation used to determine the cost efficiency of producing goods or services.

Lemonade Stand

A small, informal business, often run by children, that sells lemonade or similar beverages, typically from a roadside stand.

X-men Comic

A popular series of American comic books published by Marvel Comics, featuring a team of superheroes called the X-Men who are mutants with special powers.

One-time Payment

A single transaction involving a transfer of funds that is not expected to be repeated, often used for specific purchases or settlements.