Suppose a Labor-Augmenting Technology Were Developed for a Product That

question 181

Multiple Choice

Suppose a labor-augmenting technology were developed for a product that increased the marginal product of labor for all workers. Which of the following would happen in the labor market for this product?

• A)Demand would decrease.
• B)Demand would increase.
• C)Supply would decrease.
• D)Supply would increase.

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Definitions:

Exponential Growth

A process of increase in number or size, at a constantly growing rate.

J-shaped Curve

A concept or graphical representation showing a relationship between two variables where an initial increase in the independent variable results in a decrease in the dependent variable, followed by a significant increase.

Anti-predator Defense

Strategies and adaptations developed by animals to evade, deter, or survive attacks from predators.

Caterpillars

The larval stage of butterflies and moths, characterized by a segmented body and often distinct patterns or colors that feed voraciously before pupating.