Which of the Following Would Tend to Increase the Wage

question 140

Multiple Choice

Which of the following would tend to increase the wage of coal miners?

• A) new environmental laws that make it more costly for firms to use coal in their production process
• B) an increase in the price of oil, a substitute for coal
• C) a decrease in the demand for coal
• D) an increase in the supply of coal miners

---

Definitions:

Input

A resource or component used in the production process to produce goods and services.

Production Function

A production function is a mathematical model that describes the relationship between inputs used in production (like labor and capital) and the output produced.

Profit

The financial gain achieved when the revenues obtained from business activities exceed the expenses, costs, and taxes associated with maintaining the activity.

Commodity

A primary item used in trading that is replaceable with other items of the same type.