Scenario 19-1 Ferris, a Student at a Community University, Is Considering What

question 128

Multiple Choice

Scenario 19-1
Ferris, a student at a community university, is considering what he should do for summer employment.Two recruiters show up at his school in search of summer workers.Recruiter A is looking for lifeguards to patrol the beach at an exclusive island resort in the Caribbean.Recruiter B is looking for workers to staff positions at a local summer youth camp.
-Refer to Scenario 19-1.Ferris is carefully considering the options that each recruiter presents.On the basis of knowledge obtained in his economics class,what is Ferris likely to conclude

• A)The lifeguard job is likely to be more fun than the summer camp job, so the wage for that job is likely to be higher than otherwise.
• B)If the summer camp job doesn't require any special skills, the wage for that job is likely to be lower than otherwise.
• C)Because the summer camp job requires some night-shift work, the wage for that job is likely to be lower than otherwise.
• D)The lifeguard job is likely to offer good social opportunities, so the wage for that job is likely to be lower than otherwise.

---

Definitions:

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not yet been sold or liquidated.

Amortized Cost Basis

A valuation method for certain investments that smooths out returns over the life of the investment, taking into account amortization or accretion adjustments.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Other than Temporary

Refers to impairments or reductions in asset values that are not expected to be recovered in the short term.