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:

Computer Clock

A mechanism within a computer that keeps track of time and coordinates the execution of tasks.

Wasted Capacity

Refers to the portion of the potential production output or service capability that remains unused or not effectively utilized.

Excessive Cancellations

A situation where the number of orders or reservations canceled is significantly higher than usual, potentially indicating operational or demand planning issues.

Backup Source

An alternative or secondary source of supply or information that can be used if the primary source fails.