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:

Media Effects

The various ways in which media can influence people's thoughts, feelings, and behaviors.

Sleep Deprivation

A condition resulting from insufficient rest, affecting cognitive function, mood, and physical health.

Experiment

A research method involving the manipulation of variables to observe the effect on some behavior or mental process.

Negatively Correlated

A connection between two variables where, as one variable rises, the other falls, and the opposite is also true.