Which of the Following Statements Is Not Correct

question 107

Multiple Choice

Which of the following statements is not correct?

• A)Some firms pay wages that are above the equilibrium wage.
• B)Workers sometimes form labor unions to push their wages up.
• C)Wages never deviate from the balance of supply and demand in the market for labor.
• D)The federal government mandates that employers pay their workers at least as much as the minimum wage.

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Definitions:

Required Return

The minimum expected return by investors for investing in a particular security or project, considering the risk involved.

Dividend

A share of profits paid by a company to its shareholders, typically on a regular basis.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using its equity to generate profits.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.