Which of the Following Is Not a Reason Why the Wages

question 81

Multiple Choice

Which of the following is not a reason why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services?

• A)Contracts make prices and wages "sticky."
• B)Firms are often slow to adjust wages.
• C)Menu costs make some prices sticky.
• D)Unions are successful in pushing up wages.

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Definitions:

Budgeted Purchases

The anticipated expenditures on goods and materials a company plans to buy for a specific period.

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.

Yarn

A long continuous length of interlocked fibers used in the production of textiles, knitting, crocheting, sewing, and weaving.

Beginning Finished Goods

The stock of completed goods ready for sale at the beginning of a financial period.