The Labor Demand Curve Is

question 33

Multiple Choice

The labor demand curve is:

• A) upward sloping, because a lower real wage entices workers to work less.
• B) downward sloping, because a lower real wage entices firms to hire more workers.
• C) upward sloping, because a lower real wage entices firms to hire more workers.
• D) downward sloping, because a lower real wage entices workers to work less.

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Definitions:

Private Cost

The cost of a production activity that is directly borne by an enterprise.

Gallon

A gallon is a unit of volume measurement used primarily in the United States, equal to 3.785 liters.

Externality

An outcome from economic actions affecting external third parties not related to the activity, which could be either advantageous or detrimental.

Market

A system or an area where buyers and sellers interact to trade goods, services, or financial instruments.