Which one of these is why wages are sticky?
Wages can be considered sticky if they don’t fall in response to decreased demand. You just studied 28 terms!
Which of the following makes wages sticky?
Wages may be’sticky for a variety of reasons, including the role played by trade unions, employment agreements, reluctances to accept nominal wage cuts, and ‘efficiency wages’ theories.
Why are prices sticky downwards?
Sticky prices can be caused by market distortions or imperfect information. Sticky-down market effects on goods and services that consumers cannot live without and in which price volatility is possible can make consumers feel extremely uncomfortable.
Why prices are sticky in oligopoly?
The Kinked demand curve indicates that firms are not motivated to raise or lower prices. A firm that increases its price makes it less competitive and suffers a huge drop in demand. Therefore, a firm’s price is elastic for a higher price. This would mean that an increase in price could lead to a decrease in revenue.
What is a sticky deposit?
As a rule, sticky money such as term deposits are less likely than hot/volatile cash, such demand deposits, savings, and transaction accounts which are more susceptible to being withdrawn at any given time.
What is food costing and its importance?
Food costs are important as they have a direct impact on restaurant profitability. It’s the cost of ingredients, and doesn’t include overheads or labour costs. It is a vital tool for determining if food costs targets have been met.
What are shoe leather costs in economics?
Shoe-leather cost is the time and effort people put in to try to mitigate the effects of inflation. This includes holding less money and making additional trips to banks.
What are unit of account costs?
Inflation unit-of-account cost is the amount of money that inflation makes less reliable. Inflation can lead to higher transaction costs, which are called shoe-leather. Menu costs represent the true costs of changing prices.
What are the 3 function of money?
Money has had many forms throughout history, but it has always served three functions: store value, unit account and medium of exchange. Modern economies use fiat money, which is not a commodity and is not “backed” by any commodity.
What is the difference between cost Centre and cost unit?
Cost center refers to any subdivision or part of an organization to which costs are incurred but that does not directly contribute to the company’s revenues. Any unit that can be measured in terms of product or service and used to calculate costs is called a cost unit. It is used to classify costs.
What are the different types of cost Centres?
There are six main types of cost centers within an organization.
- Personal cost center.
- Impersonal cost center.
- Production cost center.
- Service cost center.
- Operation cost center.
- Process cost center.
- Creation of a responsibility center.
- Increase in operational efficiency.
Which of the following is an abnormal cost of idle time?
Machine breakdowns are an unusual cause of Idletime.
Which of the following is example of an abnormal idle time?
Examples for abnormal idle time are: (i) Time lost due to machinery breaking down because of inefficiency of works engineer. (iii). The time lost due to a shortage of materials because of inefficiency by the storekeeper/buying department.
What is called overhead cost?
Overhead is the cost of running a business, but does not include the costs involved in creating products or services. There are many types of overhead. For example, administrative overhead includes the costs associated with managing a business. The income statement lists overhead expenses.