If the Supply of Labor Decreases, Which of the Following

question 84

Multiple Choice

If the supply of labor decreases, which of the following events will occur?

• A) The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate.
• B) The wage rate will fall and firms will decrease employment to the point where MRP equals the new wage rate.
• C) The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate.
• D) The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate.

---

Definitions:

Toxic Dose

The amount of a substance that causes harmful effects to an organism, potentially leading to poisoning or death.

Cyclothymic Disorder

Milder but more chronic form of bipolar disorder that consists of alternation between hypomanic episodes and mild depressive episodes over a period of at least 2 years.

Bipolar Disorder

A mental illness that causes extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Cyclothymic Disorder

A chronic mood disorder characterized by alternating periods of mild depression and hypomania.