When Output Increases by 1%, the Number of Jobs Does

question 284

Multiple Choice

When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?

• A) A firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
• B) A firm is likely to meet some of the increase in output by decreasing the number of hours worked per job.
• C) Firms are likely to meet some of the increase in output by reducing labor productivity.
• D) Firms are likely to meet part of the increase in output by eliminating any excess capital they may have.

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Definitions:

Career Options

The range of possible jobs or professions available to an individual based on their interests, skills, and qualifications.

Identity Crisis

A period of uncertainty and confusion in which a person's sense of identity becomes insecure, typically during adolescence or other life transitions.

Psychological Moratorium

A period when adolescents experiment with different roles, values, beliefs, and relationships.

Life Roles

refer to the various positions individuals occupy in society, each with its own set of expectations, duties, and responsibilities.