If the Supply of Labour Curve Is Upward Sloping but Not

question 24

Multiple Choice

If the supply of labour curve is upward sloping but not vertical,and if the value of marginal product of labour increases,

• A)the supply of labour increases.
• B)the wage rate rises.
• C)the marginal cost of production increases.
• D)the exploitation of workers decreases.
• E)employment is unchanged.

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Definitions:

Short Run

A period in economics where at least one input is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Allocative Efficiency

A condition where resources are distributed according to consumer preferences, optimizing utility for both producers and consumers.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.