If Both the Demand for Labour and the Supply of Labour

question 22

Multiple Choice

If both the demand for labour and the supply of labour increase, then the equilibrium wage rate ________ and the equilibrium quantity of labour ________.

• A) falls; increases
• B) falls; decreases
• C) rises; increases
• D) rises; might increase, decrease or not change
• E) might rise, fall or not change; increases

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Definitions:

Broad Approach

A wide-ranging or comprehensive method or perspective that encompasses a variety of factors, elements, or principles.

Interdisciplinary Orientation

An approach that integrates concepts, ideas, and methods from different disciplines to solve complex problems.

Kurt Lewin

A psychologist known for founding social psychology and for developing the theory of change management, group dynamics, and action research.

Applied Social Psychology

An area of psychology that utilizes social psychological principles to address and solve real-world problems and improve quality of life.