The wage rate will fall and firms will increase employment to the point where MRP equals the new wage rate if

A. the demand for labor decreases.
B. the demand for labor increases.
C. the supply of labor increases.
D. the supply of labor decreases.


Answer: C

Economics

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Indicate whether the statement is true or false

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If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in one year?

A) $105,000 B) $110,000 C) $100,000 D) $102,000

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The information contained in the table illustrates:



A. political logrolling.
B. the median-voter model.
C. the paradox of voting.
D. the principal-agent problem theorem.

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Referring to Figure 19.1, the peso is likely to appreciate if the exchange rate is either ________ or ________ pesos to the dollar

A) 10; 11 B) 11; 12 C) 12; 13 D) 13; 14

Economics