Which of the Following Is Not Adequately Explained by the Labor-Supply-And-Demand

question 177

Multiple Choice

Which of the following is not adequately explained by the labor-supply-and-demand model?

• A)The increase in the employed labor force during economic expansions
• B)The effect of lower wages on the incentive for firms to hire more people
• C)Why there is always some unemployment
• D)Why real wages rise during economic expansions
• E)The effect of higher wages on the incentive for people to work more hours

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Definitions:

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services.

New Approaches

Innovative or alternative methods and strategies introduced to address issues or improve existing processes.

Standard of Living

The measure of affluence, convenience, tangible assets, and basic needs present for a particular economic group or location.

Labor Productivity

A gauge of economic productivity that determines the output of goods and services for every hour worked.