In the Absence of Minimum Wages,efficiency Wages,or Labour Unions,a Decline

question 249

Multiple Choice

In the absence of minimum wages,efficiency wages,or labour unions,a decline in the demand for labour will likely result in _____ if wages are flexible.

• A) higher levels of employment
• B) no changes in employment
• C) a lower level of employment but likely no change in the unemployment rate
• D) a lower level of employment and a higher unemployment rate

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid out.

Incurred Expenses

Costs that have been recognized or consumed in the operations of a business, regardless of the payment status.

Net Income

The total profit or loss of a company after deducting all expenses, taxes, and costs from total revenue.

Accounting Period

The span of time at the end of which the financial position of a business is calculated and reported, typically a month, quarter, or year.