Which of the Following Is True of the Supply and Demand

question 57

Multiple Choice

Which of the following is true of the supply and demand curves for the labor market?

• A)The supply curve slopes downward and the demand curve slopes upward.
• B)The supply curve slopes upward and the demand curve slopes downward.
• C)Both the supply curve and the demand curve slope upward.
• D)Both the supply curve and the demand curve slope downward.
• E)Both the supply curve and the demand curve are horizontal.

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Definitions:

Finished Goods Inventory

The stock of completed products not yet sold, valued at either the cost of production or the market price, and recorded as an asset on the balance sheet.

Selling Expenses

Costs incurred directly from the sale of a product or service, not including the cost of goods sold but may include advertising, sales commissions, and store supplies.

Absorption Costing

A pricing approach that encompasses all production expenses, such as direct materials, direct labor, along with both variable and fixed overhead, in a product's cost.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as period costs that are expensed in the period they are incurred.