Suppose There Is a Large Increase in the Number of Workers

question 181

Multiple Choice

Suppose there is a large increase in the number of workers migrating to a particular country. For that particular country, this is likely to

• A)cause a leftward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages.
• B)cause a rightward shift of the labor demand and labor supply curves as more workers are willing to work and firms can pay lower wages.
• C)cause a rightward shift of the labor supply curve as more workers are willing to work at any given wage.
• D)cause a rightward shift of the labor demand curve as the supply of workers increases and firms can pay lower wages.
• E)cause an upward movement along the labor supply curve as more workers are available for work.

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Definitions:

Payable

Short-term financial obligations or debts of a company, typically to suppliers, that are due to be paid within one year.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividends Payable

A liability on a company's balance sheet representing the amount of declared dividends that are owed to shareholders but not yet paid.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.