If Wages Are Sticky, a Decrease in Labor

question 180

Multiple Choice

If wages are sticky, a decrease in labor

• A) supply decreases the wage rate.
• B) demand increases the wage rate.
• C) demand decreases the wage rate.
• D) none of the above

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Definitions:

Prepaid Insurance

The portion of an insurance premium that has been paid in advance and is recognized as an asset until it is consumed over time.

Adjusting Entry

A financial transaction documented at the close of an accounting cycle to apportion income and costs to the suitable period.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting wear and tear.

Adjustments

Corrections or changes made to the book balances of accounts to reflect more accurate values in financial accounting.