Which of the Following Statements Would Be Represented by a Backward-Bending

question 105

Multiple Choice

Which of the following statements would be represented by a backward-bending labor supply curve?

• A)A $50, 000-a-year professor works more hours than a $20, 000-a-year professor.
• B)The CEO of a major computer manufacturer works more hours than the union workers.
• C)The owners of a successful business work fewer days than do their employees.
• D)Hospital janitors work fewer hours than does the chief of obstetrics.
• E)High-ranking executives are more likely to work past 5:00 p.m.than are middle managers.

---

Definitions:

Common Size Financial Statements

Financial statements that present all line items as percentages of a common base figure rather than as absolute numerical figures, facilitating comparison.

Inventory Valuation Methods

Inventory Valuation Methods are accounting processes used to determine the cost of goods sold and the inventory value at the end of an accounting period.

FIFO vs. LIFO

A comparison between two inventory valuation methods: First-In, First-Out (FIFO), where goods first bought are the first to be sold, and Last-In, First-Out (LIFO), where goods most recently bought are the first to be sold.

P/E Ratios

The price-to-earnings ratio, a valuation metric for stocks calculated by dividing the current market price of a stock by its earnings per share.