Suppose There Is a Large Increase in the Number of Workers

question 181

Multiple Choice

Suppose there is a large increase in the number of workers migrating to a particular country. For that particular country, this is likely to

• A)cause a leftward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages.
• B)cause a rightward shift of the labor demand and labor supply curves as more workers are willing to work and firms can pay lower wages.
• C)cause a rightward shift of the labor supply curve as more workers are willing to work at any given wage.
• D)cause a rightward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages.
• E)cause an upward movement along the labor supply curve as more workers are available for work.

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Definitions:

Expiration Date

In finance, it typically refers to the last day on which options or futures contracts are valid.

Value Decrease

A reduction in the worth or market value of an asset or investment over time.

American Call Option

A type of call option that can be exercised at any time before its expiration date, allowing the holder to buy the underlying asset at the specified strike price.

Exercise Price

The specified price at which the option holder can buy (call option) or sell (put option) the underlying asset or security when exercising their option.