A Fall in the Wage Rate Would Lead to a Movement

question 133

Multiple Choice

A fall in the wage rate would lead to a movement

• A)down the MRP curve and a rise in the number of workers hired.
• B)down the MRP curve and a decline in the number of workers hired.
• C)up the MRP curve and a decline in the number of workers hired.
• D)up the MRP curve and a rise in the number of workers hired.

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Definitions:

Return On Common Equity

Return on Common Equity (ROCE) measures the return a company generates on the common equity held by its shareholders, indicating how effectively equity is used to generate profits.

Net Income

A company's overall earnings minus all expenditures and tax obligations.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders. Preferred stock typically does not have voting rights.

Return On Assets Ratio

A profitability ratio that measures how efficiently a company can manage its assets to produce net income, calculated by dividing net income by total assets.