Coal Mining Is a Dangerous and Dirty Job

question 411

Multiple Choice

Coal mining is a dangerous and dirty job. Suppose someone developed new machinery that made coal mining safer and cleaner; at the same time, suppose it made coal miners more productive. We would expect that the wages of coal miners would

• A)rise.
• B)fall.
• C)stay exactly the same.
• D)rise, fall, or stay the same.

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Definitions:

Accrue Revenue

The process of recognizing revenue that has been earned but not yet received in cash, to reflect it in the financial statements.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as the difference between total assets and total liabilities.

Liabilities

Obligations owed by a company to parties external to the business, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Resources owned by a company that have economic value and can provide future benefits, including cash, property, and equipment.