Suppose in Some Economy There Are 100 Million Workers; 8

question 294

Multiple Choice

Suppose in some economy there are 100 million workers; 8 million of those workers work in retail trade, and 2 million of the retail workers belong to unions. Total union membership in this economy is 30 million. The rate of unionization in the economy is

• A) 30 percent, and the rate of unionization in retail trade in 20 percent.
• B) 8 percent, and the rate of unionization in retail trade is 2 percent.
• C) 30 percent, and the rate of unionization in retail trade is 25 percent.
• D) 20 percent, and the rate of unionization in retail trade is 25 percent.

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Definitions:

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts offered.

Cash Discounts

A reduction in the amount owed by a customer if payment is made within a specified time frame.

Period-End Adjusting Entry

An accounting record made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Delivery Expense

Costs incurred by a company to transport its products to customers, including freight, shipping, and handling charges.