How will an increase in labor productivity affect equilibrium in the labor market?
A) The demand for labor will increase and the equilibrium wage and quantity of labor will increase.
B) The demand for labor will decrease because fewer workers will be needed to produce the same output. The equilibrium wage and quantity of labor will decrease.
C) The supply of labor will increase and the equilibrium wage and quantity of labor will increase.
D) The demand for jobs will increase and the equilibrium wage and quantity of labor will increase.
A
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Refer to Table 2.4. What can be observed about the given resources?
A) Land is fixed but fertilizer is variable. B) Land and fertilizer are both fixed. C) Land is variable but fertilizer is fixed. D) Land and fertilizer are both variable.
An increase in expected future disposable income ________ consumption expenditure and ________
A) increases; shifts the consumption function downward B) increases; shifts the consumption function upward C) decreases; shifts the consumption function upward D) increases; results in a movement upward along the consumption function E) decreases; shifts the consumption function downward
By the permanent-income hypothesis, the MPC of transitory income is
A) k. B) j. C) kj. D) k - j. E) 0.
Since 1990, the growth rate of real gross private investment in the United States has been relatively ________ and the growth rate of real personal consumption has been relatively ________
A) stable; stable B) stable; volatile C) volatile; stable D) volatile; volatile