If the Supply of Labour Decreases,which of the Following Events

question 11

Multiple Choice

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

• A)The wage rate will decrease and firms will increase the number of workers to the point at which the value of marginal product equals the new wage rate.
• B)The wage rate will decrease and firms will decrease the number of workers to the point at which the value of marginal product equals the new wage rate.
• C)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product equals the new wage rate.
• D)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product is greater than the new wage rate.
• E)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product is less than the new wage rate.

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Definitions:

Second Quarter

Refers to the second division of a fiscal year, often comprising months April, May, and June, used for reporting and planning in businesses.

Unit Sales

Unit sales measure the total number of individual items or units that a business sells within a specific period.

Budgeted Income Statement

A financial statement that forecasts a company's expected revenues, expenses, and net income for a future period, based on anticipated financial activities.

Master Budget

A comprehensive financial planning document that includes all of a company's budgets, consolidating its income, expenses, assets, and liabilities.