What are the basic assumptions of labor market theories?
What will be an ideal response?
Theories of labor markets usually begin with four basic assumptions:
| • | Employers always seek to maximize profits. |
| • | People are homogeneous and therefore interchangeable. |
| • | The pay rates reflect all costs associated with employment. |
| • | The markets faced by employers are competitive. |
Business
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Indicate whether the statement is true or false
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The Bretton Woods system was a ________-based gold exchange system.
Fill in the blank(s) with the appropriate word(s).
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Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of
A) diversifiable risks. B) physical hazards. C) nondiversifiable risks. D) speculative risks.
Business
Preferred stock valuation usually treats the preferred stock as a
A) common stock. B) long-term bond. C) perpetuity. D) capital asset.
Business