Which of the Following Statements Does Not Accurately Describe the Market

question 476

Multiple Choice

Which of the following statements does not accurately describe the market for labor?

• A)The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages.
• B)Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level.
• C)Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
• D)Discrimination by employers against a group of workers may artificially lower wages for that group.

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Definitions:

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company's total net income.

Negative Growth Rates

A decrease over time in the measurable value of an economic indicator, such as GDP or investment value.

Expected Capital Gains Yield

The anticipated rate of return from an investment due to an increase in its market price, not including dividends or other income.

Dividend Yield

Defined as either the end-of-period dividend divided by the beginning-of-period price, or the ratio of the current dividend to the current price. Valuation formulas use the former definition.