Which of the Following Would Certainly Increase the Demand for Labor

question 21

Multiple Choice

Which of the following would certainly increase the demand for labor?

• A) an increase in demand for the final product and an increase in the productivity of labor
• B) an increase in demand for the final product and a decrease in the productivity of labor
• C) a decrease in demand for the final product and an increase in the productivity of labor
• D) a decrease in demand for the final product and a decrease in the productivity of labor

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Definitions:

Liquidation Transactions

Transactions that occur when a company is in the process of closing and its assets are being sold off.

Capital Distributions

Capital distributions are payments made by a corporation to its shareholders from its capital base, as opposed to payments made from earnings or profit.

Liquidation Expenses

Costs associated with disbanding a company or partnership, including selling off assets, paying off creditors, and distributing any remaining assets to shareholders or partners.

Deficit Capital Account

A situation where a company's capital account balance is negative, indicating that liabilities exceed assets.