Which of the Following Statements Is True

question 54

Multiple Choice

Which of the following statements is true?

• A) The market demand curve for labor is found by adding the supply curves for labor of individual firms.
• B) A firm's demand for labor is the upward-sloping portion of the MRP curve for labor.
• C) The market demand for labor will change as a result of a change in the use of a complementary factor or a substitute factor.
• D) The market demand curve for labor is vertical at the profit-maximizing wage.

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Definitions:

Current Liabilities

Financial obligations a company is due to pay within one year or within its normal operating cycle if longer.

FICA Withholdings

The portion of earnings withheld by employers for Social Security and Medicare taxes under the Federal Insurance Contributions Act.

Gross Earnings

The total amount of income earned by a company before deductions such as taxes and expenses.

Pay Period

The interval at which an employee's salary is calculated and paid.