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:

Fully Executed

A contract or agreement that has been completely signed by all parties involved and all the terms are fully met.

Rescinded by Agreement

The mutual decision of parties involved in a contract to cancel or nullify the agreement.

Anticipatory Repudiation

An assertion or action by a party indicating that he or she will not perform an obligation that he or she is contractually obligated to perform at a future time.

Material Breach

A significant violation of a contract that substantially undermines the agreement, giving the aggrieved party the right to seek legal remedies.