A Reduction in the Supply of Labor Will Cause Wages

question 113

Multiple Choice

A reduction in the supply of labor will cause wages to:

• A) decrease and employment to decrease.
• B) increase and employment to decrease.
• C) increase and employment to increase.
• D) decrease and employment to increase.

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Definitions:

Standard Workweek

Refers to the officially set or commonly accepted number of working hours per week for full-time employment in a specific jurisdiction or organization.

Military Spending

Financial allocations by a government for the maintenance and development of its armed forces and defense-related activities.

GNP

Gross National Product, the total value of goods and services produced by the residents of a country within a specific time period.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the value of all goods and services produced over a specific time period.