The Figures Given Below Show the Demand (D)and Supply (S)

question 112

Multiple Choice

The figures given below show the demand (D) and supply (S) curves of labor in two different markets.Figure 16.3

-If the supply of skilled workers is increased such that it is equal to the supply of unskilled workers, we can expect:

• A)wages of skilled workers to be equal to wages of unskilled workers.
• B)wages of skilled workers to be lower than wages of unskilled workers.
• C)wages of skilled workers to be higher than wages of unskilled workers.
• D)wages of unskilled workers to fall from its current level.
• E)wages of both skilled and unskilled workers to remain unaffected.

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Definitions:

Operating Leases

Leasing agreements for assets where the lessor retains ownership, and the lessee uses the asset for a specified period.

Financial Leases

Long-term leases that are non-cancellable and include terms to buy the asset at the end of the lease period.

Equity Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a specified price before a certain date.

CCA Tax Shield

A deduction that allows businesses to depreciate the cost of an asset over time for tax purposes, reducing their taxable income.