How Does a Temporary Technological Improvement That Raises Labor's Marginal

question 42

Multiple Choice

How does a temporary technological improvement that raises labor's marginal productivity affect the supply of labor?

• A) There is no change in labor supply-changes in marginal productivity affect only labor demand.
• B) The fall in labor supply is greater than if the improvement were permanent.
• C) Labor supply will rise only if employers are willing to pay compensating differentials.
• D) Income effects lower labor supply,while intertemporal substitution raises labor supply.

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Definitions:

Strategic Planning

Involves the formulation and implementation of major goals and initiatives, taken by an organization's top management based on consideration of resources and an assessment of the internal and external environments in which the organization competes.

Long-Term Goals

Objectives or desired outcomes that a person, organization, or project aims to achieve over an extended period.

Operational

Pertaining to the operations or functioning of a system or organization, often involving the day-to-day activities necessary for running it effectively.

Organizational Objectives

The specific goals that a company sets out to achieve, which guide its operations and strategic planning.