If at a Particular Wage Rate in a Competitive Labour

question 42

Multiple Choice

If at a particular wage rate in a competitive labour market the quantity demanded of labour is less than quantity supplied of labour,then

• A)some workers will begin to accept lower wages and induce employers to hire more workers.
• B)there will be a shortage of labour,thereby increasing the equilibrium wage rate.
• C)the demand curve for labour will shift to the right.
• D)the supply curve for labour will shift to the right.
• E)a black market for labour will form,with firms offering workers very high wages.

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Definitions:

Revenue Recognition Principle

The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.

Merchandisers

Businesses that purchase and sell goods without significantly altering their form.

Performance Obligation

A duty or commitment that a company must fulfill to transfer a promised good or service to a customer.

Sales Returns And Allowances

Sales returns and allowances account for the reduction in sales revenues due to returned or defective products allowed by a company to its customers.