A Large Inheritance from a Relative Will Tend to

question 72

Multiple Choice

A large inheritance from a relative will tend to

• A)cause movement up and to the right along your labor supply curve
• B)cause movement down and to the left along your labor supply curve
• C)shift your labor supply curve outward
• D)shift your labor supply curve inward
• E)make the income effect of a wage increase positive

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.

Debt-To-Equity Ratio

A metric that shows the balance between the amount of a company's assets financed by owners' equity and that financed by debt.

Working Capital

Working capital represents a company's operating liquidity and is calculated as current assets minus current liabilities.

Long-Term Assets

Assets that a company plans to hold for more than one fiscal year, such as buildings, land, and equipment.