Suppose the Market for Autoworkers Is Initially in Equilibrium, but Then

question 110

Multiple Choice

Suppose the market for autoworkers is initially in equilibrium, but then suppose the automakers improve working conditions at the plants. What happens in the market for autoworkers?

• A) The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease.
• B) The equilibrium wage rate and the equilibrium quantity of labor will both increase.
• C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease.
• D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.

---

Definitions:

Voucher

A special form for recording relevant data about a liability and the details of its payment.

Cash Payment

is the act of settling a transaction or discharging a debt by using physical currency or through a digital medium representing immediate value.

Internal Control Objectives

The goals aimed at ensuring the reliability of financial reporting, compliance with laws and regulations, and effectiveness of operations.

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.