Table 4-7 Table 4-7 Shows the Demand and Supply Schedules

question 157

Multiple Choice

Table 4-7
Table 4-7 shows the demand and supply schedules for the labor market in the city of Pixley.
-Refer to Table 4-7. If a minimum wage of $12.50 is mandated, there will be a

• A) shortage of 40,000 units of labor.
• B) surplus of 40,000 units of labor.
• C) shortage of 80,000 units of labor.
• D) surplus of 80,000 units of labor.

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Definitions:

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.

Adjusting Entries

Bookkeeping adjustments made before the preparation of financial statements to account for accruals and deferrals not recorded through daily transactions.

Optional

Optional refers to a choice or item that is not mandatory and can be selected based on preference or requirement.

Adjusting Entries

These are journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.