According to the Neoclassical Theory of Distribution, the Wages Paid

question 117

Multiple Choice

According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are higher than those paid to fast food workers because assembly line workers

• A)have college degrees, on average, whereas fast food workers usually do not.
• B)produce a product of greater market value than do fast food workers.
• C)work in a less stressful environment than do fast food workers.
• D)are less likely to belong to a labor union than are fast food workers.

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Definitions:

Credit Sales

Sales made by a business where the payment is to be received at a later date, extending credit to customers.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that might not be collected, reducing the total value of accounts receivable by a corresponding amount.

Credit Sales

Sales made on credit, meaning payment is to be received after the delivery of goods or services.