Suppose the Demand for Hard-Wood Flooring Increases,while the Demand for Wall-To-Wall

question 27

Multiple Choice

Suppose the demand for hard-wood flooring increases,while the demand for wall-to-wall carpeting decreases.Based on this change in consumer tastes,the demand for hard-wood-flooring factory workers in North Carolina increases,while the demand for carpet factory workers in Georgia decreases.This is an example of

• A)frictional unemployment created by efficiency wages.
• B)structural unemployment created by efficiency wages.
• C)frictional unemployment created by sectoral shifts.
• D)structural unemployment created by sectoral shifts.

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Definitions:

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the company for reinvestment in its primary business or for debt repayment.

Dividends Declared

Profits distributed by a company to its shareholders, usually determined by the company's board of directors.

Statement of Retained Earnings

A financial document showing how a company's retained earnings have changed over a period due to dividends and earnings.

Expense Account

An expense account refers to a ledger account that tracks money spent or costs incurred in a business's operational activities.