All of the Following Statements,except One,are Correct When a Trade

question 97

Multiple Choice

All of the following statements,except one,are correct when a trade union successfully imposes a wage rate above equilibrium.Which is the exception?

• A)There will be more workers willing to work than are hired.
• B)The firm's total wage bill will definitely be higher.
• C)The average firm is not operating in a competitive factor market.
• D)The quantity of workers hired will be less after the imposition of the higher wage than it was before.
• E)Neither the demand for nor the supply of labour has changed.

---

Definitions:

Net Cash Flow

The variation in cash earnings versus expenditures for a business during a certain period.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities, essentially the net worth attributable to shareholders.