If the Supply of Labor Decreases, Which of the Following

question 90

Multiple Choice

If the supply of labor decreases, which of the following events will occur?

• A) The wage rate will increase and firms will decrease employment.
• B) The wage rate will increase and firms will increase employment.
• C) The wage rate will fall and firms will decrease employment.
• D) The wage rate will fall and firms will increase employment.

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Definitions:

Subjective

Refers to personal perspectives, feelings, or opinions entering the decision-making process, as opposed to objective, which is fact-based and uninfluenced by personal feelings.

Alpha Waves

Brain waves detected by an EEG that indicate a state of relaxation or light meditation, typically with a frequency of 8-12 Hz.

Delta Waves

Slow brain waves typically associated with the deep sleep stage, aiding in healing and regeneration of the body.

Beta Waves

A pattern of brain wave activity associated with active, alert cognition and wakefulness.