An Increase in the Population and Hence the Supply of Labor

question 268

Multiple Choice

An increase in the population and hence the supply of labor causes a

• A) surplus of labor at the original real wage rate and the real wage rate will fall.
• B) shortage of labor at the original real wage rate and the real wage rate will fall.
• C) surplus of labor at the original real wage rate and the real wage rate will rise.
• D) shortage of labor at the original real wage rate and the real wage rate will rise.

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Definitions:

Fishery Collapse

A rapid decline in a fishery’s population because its fish are being harvested faster than they can reproduce.

Harvesting Rates

The speed at which natural resources are extracted or harvested, impacting sustainability and future availability.

Reproduction

The biological process by which new individual organisms are produced.

ITQ

Individual Transferable Quotas (ITQs) are a tool in fishery management that allocate a specific portion of the total allowable catch to individual fishermen or companies.