Suppose All Blue-Collar Workers Receive a Substantial Pay Increase

question 43

Multiple Choice

Suppose all blue-collar workers receive a substantial pay increase.What will happen in the product markets that employ these workers?

• A)Supply will decrease.
• B)Supply will increase.
• C)Output will rise.
• D)Demand will decrease.
• E)Prices will fall.

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Definitions:

Receivables

Money owed to a company by its customers or other parties for goods and services provided on credit.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Credit Risk Analysis

The process of evaluating the likelihood that a lender may not receive the owed principal and interest, which leads to an interruption of cash flows and increased costs for collecting funds.

Financial Ratios

Quantitative measures derived from financial statement analysis used by investors and analysts to assess a company's performance, liquidity, profitability, and solvency.