Which of the Following Causes a Decrease in Labor Supply

question 257

Multiple Choice

Which of the following causes a decrease in labor supply?

• A) when wages and the price level decrease proportionately
• B) an increase in income tax rates
• C) an increase in the general price level
• D) an increase in transfer payments

Understand the chemical similarities between amphetamines and naturally occurring substances.

Identify the symptoms of withdrawal from addictive substances.

Understand the biochemical mechanisms of drugs such as cocaine on neurotransmitters.

Recognize the psychological and physical effects of drug abuse.

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Definitions:

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, reflecting the proportion of fixed costs to variable costs.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, which can also increase the risk of loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Average Cost

A method of inventory costing, or determining an investment's cost, by taking the total cost of items and dividing it by the total number of items.