The Demand for Labour Is Different from the Demand for Final

question 194

Multiple Choice

The demand for labour is different from the demand for final goods and services because

• A) the demand for labour is derived from the demand for the good or service the labour is used to produce.
• B) it is a demand for people, not inanimate objects.
• C) the demand for labour is more inelastic than the demand for the goods and services produced with this labour.
• D) the law of demand does not apply to the demand for labour.

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Definitions:

Market-To-Book Value

A ratio comparing a company's current market price to its book value, used to evaluate whether a stock is over or undervalued.

Financial Statements

Are formal records of the financial activities and position of a business, person, or other entity, providing an overview of a company's financial condition in both short and long term.

Average Collection Period

The ratio of accounts receivable to daily sales. Also called days’ receivables.

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.