One Difference Between the Labor Market and Markets for Goods

question 54

Multiple Choice

One difference between the labor market and markets for goods and services is

• A) the demand in the labor market is inelastic; the demand for goods and services may be elastic or inelastic.
• B) the supply of labor is perfectly inelastic because the quantity supplied is constant. The elasticity of supply for goods and services is different in different markets.
• C) concepts of fairness arise more frequently in labor markets than in the markets for goods and services.
• D) in the labor market, firms are suppliers while households are demanders.

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Definitions:

Cost Of Goods Sold

Expenses specifically arising from the production of the merchandise a business sells, such as labor and materials.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its quick assets without needing to sell inventory.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.

Sales On Account

Sales made to customers for which payment is to be made in the future.