Which of the Following Best Explains How Employment Can Increase

question 96

Multiple Choice

Which of the following best explains how employment can increase at the same time as the real wage is decreasing?

• A)The labor supply and demand curves both shift to the right; however, the shift in the labor demand curve is greater than the shift in the labor supply curve.
• B)The labor supply and demand curves both shift to the left; however, the shift in the labor supply curve is greater than the shift in the labor demand curve.
• C)A rightward shift of the labor demand curve and a movement along the labor supply curve occur.
• D)The labor supply and demand curves both shift to the right; however, the shift in the labor supply curve is greater than the shift in the labor demand curve.
• E)The labor supply and demand curves both shift to the left; however, the shift in the labor demand curve is greater than the shift in the labor supply curve.

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Definitions:

Monthly Profit

The total revenue of a business minus the total expenses for the month, indicating the financial gain.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Variable Cost

Costs that vary in direct proportion to changes in levels of production or business activity, such as materials and labor.

Fixed Cost

A cost that does not change with the volume of sales.