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:

Capital Gains

The increase in value of an asset or investment above its purchase price, realized upon the sale of the asset.

Treasury Stock

Treasury stock refers to shares that were once in circulation but have been bought back by the issuing company and held in its own treasury.

Contra

A term used in accounting to describe accounts that have an opposite effect on the account they are related to, used to reduce the balance of the original account.

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the value that belongs to the company's owners.