Refer to the Following Figure When Answering
Figure $L _ { 2 } ^ { D }$

question 69

Multiple Choice

Refer to the following figure when answering
Figure 7.5: Labor Market
-Consider Figure 7.5. If the demand curve for college graduates is characterized by $L _ { 2 } ^ { D }$ , which of the following describes why the demand for labor for college graduates is higher than that for high school students, characterized by $L _ { 1 } ^ { D }$
?

• A) There is a growing number of college graduates.
• B) There are fewer college graduates than high school graduates.
• C) College graduates have a higher marginal product.
• D) College graduates are smarter than high school graduates.
• E) None of these answers are correct.

---

Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to use and time.

Salvage Value

The predicted sale value of an asset at the end of its operational life.

Trade-In Allowance

The credit offered by a seller for an old item that is given as part of the payment for a new item, reducing the cash needed to complete the new purchase.

Accumulated Depreciation

This refers to the total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its decrease in value over time.