Which of the Following Is TRUE

question 21

Multiple Choice

Which of the following is TRUE?

• A) The main reason why wages are high in some countries is the existence of unions in those countries.
• B) The wages in unionized jobs tend to be lower than the wages in nonunionized jobs.
• C) Unions increase the supply of labor and increase wages as a result.
• D) Unions raise wages for some workers and lower wages for other workers.

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Definitions:

Implicit Interest Rate

The rate that equates the present value of lease payments and any unguaranteed residual value to the fair value of the leased asset.

Income Report

An income report, commonly known as an income statement, is a financial document that shows a company's revenue, expenses, and net income over a specific period.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset during the lease term.

Constructively Capitalize

The accounting practice of recognizing an expenditure as a fixed asset and amortizing it over time, despite not being capitalized in a traditional sense.