After an Increase in the Demand for Construction Workers, the Market

question 217

Multiple Choice

After an increase in the demand for construction workers, the market will attain its new long-run equilibrium faster if

• A) wages are flexible.
• B) wages are inflexible, forcing new people to enter the market.
• C) unions restrict the number of new construction workers.
• D) people ignore the shortage in the short run.

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Definitions:

Work In Process Inventory

Goods partially completed in the manufacturing process, not yet ready for sale.

Merchandise Inventory

This term refers to the finished goods acquired for resale by a company, forming a crucial part of its current assets on the balance sheet.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.

Materials Inventory

A stock of raw materials and components that are stored by a company and used in the production of its goods.