Sticky Wages Occur Because

question 76

Multiple Choice

Sticky wages occur because:

• A) employers must wait until the current contract ends to cut someone's pay.
• B) unions often negotiate wages for several years in advance.
• C) wages can only be changed at the end of contracts, as opposed to final good prices which can change anytime.
• D) All of these are true.

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Definitions:

Plant Assets

Long-term tangible assets that are used in the production of goods or services and are not intended for sale.

Depreciated

A measure of the reduction in the value of an asset over time, often used for accounting and tax purposes.

Unearned Revenue

Money received by a company for a service or product that has yet to be provided or delivered.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the correct period.