If You Observed the Wage Rate Decreasing While Employment Increased,which

question 131

Multiple Choice

If you observed the wage rate decreasing while employment increased,which of the following would be a possible explanation?

• A) A decrease in labor demand
• B) A decrease in labor demand coupled with a decrease in labor supply
• C) An increase in labor supply
• D) A decrease in labor supply
• E) It is not possible for the wage rate to decrease while employment is increasing

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Definitions:

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.

Depreciation Expense

The allocated portion of the cost of a fixed asset, written off as an expense over its useful life to reflect its wear and tear or obsolescence.

Amortization Expense

The periodic allocation of the cost of an intangible asset over its useful life.