A Government Subsidy of Wages Will Shift the Demand Curve

question 15

Multiple Choice

A government subsidy of wages will shift the demand curve for labor to the

• A) left
• B) right
• C) The direction of the shift depends on the size of the subsidy

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Definitions:

Double-Entry Accounting

A system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account.

Debits

Accounting entries that represent an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credits

Recognition or acknowledgment for something received or accomplished, often used in finance to denote money received or a decrease in liabilities.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.