If an Excess Quantity of Labor Demanded Exists in a Free

question 353

Multiple Choice

If an excess quantity of labor demanded exists in a free market, there is a tendency for

• A) quantity supplied to rise.
• B) the wage rate to fall.
• C) quantity demanded to fall.
• D) the wage rate to rise.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.

Reversing Entries

Entries recorded at the start of a new accounting cycle to negate or annul the effects of adjustments entered at the conclusion of the prior cycle.

Wages Expense

This is the total amount of money paid to employees for work performed during a specific period.

Payroll

The total amount of money paid by a business to its employees over a set period, including wages, salaries, bonuses, and deductions.