Which of the Following Statements About a Tight Labor Market

question 59

Multiple Choice

Which of the following statements about a tight labor market is true?

• A) The labor markets for word processors and telemarketers have been fairly tight.
• B) There is downward pressure on wages in such a market.
• C) The demand by employers exceeds the available supply of workers.
• D) There is reducing pressure for wage increases for sewing machine operators.

---

Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment itself.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Cash Inflows

The total cash receipts minus cash payments over a period of time from operational, financial, and investing activities.

Profitability Index

A financial metric that measures the return on a project or investment relative to its cost, calculated by dividing the present value of future cash flows by the initial investment cost.