Which of the Following Is True of the Market for Labor

question 42

Multiple Choice

Which of the following is true of the market for labor?

• A) Workers are the suppliers of labor.
• B) Workers are the demanders of labor.
• C) The labor supply curve is perfectly elastic.
• D) The labor demand curve is perfectly elastic.

---

Definitions:

Prepaid Expense

An asset account that represents costs paid in advance for expenses that will be incurred within a future accounting period.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded in the ledgers.

Accrual Basis Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis Accounting

An accounting method that records revenues and expenses when cash is actually received or paid, rather than at the time they are incurred.