The First 3 Columns of the Following Table Show Data

question 27

Multiple Choice

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm.

-What happens if the supply of labour increases more than does the demand for labour?

• A)Wage rates will increase.
• B)Wages rates will decrease.
• C)The effect on wage rates is indeterminate.
• D)The quantity of hours worked will decline.

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Definitions:

Fetuses

A developing human from roughly eight weeks after conception until the time of birth.

Merchandise Inventory

Goods and products a company holds for the purpose of resale in the ordinary course of business.

Income Summary

An account to which the revenues and expenses are transferred at the end of an accounting period to calculate the net income or loss for the period before transferring this balance to owner's equity.

Purchases

Purchases refer to the acquisition of goods or services by a company for use in its operations or for resale to customers.