Related to the Economics in Practice on Page 222: If

question 48

Multiple Choice

Related to the Economics in Practice on page 222: If labor productivity increases and the supply of labor increases, the equilibrium wage rate

• A) will increase.
• B) will decrease.
• C) will remain constant.
• D) may increase, decrease, or remain constant.

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated by dividing total liabilities by total assets.

Liabilities

Financial obligations a company owes to external parties, including loans, accounts payable, and mortgages.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting the company’s total resources.

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts, used to verify that total debits equal total credits in the accounting ledgers.