When Labor Demand Increases, the Wage Is Expected To

question 184

Multiple Choice

When labor demand increases, the wage is expected to:

• A) increase.
• B) decrease.
• C) remain the same.
• D) change in the same direction.

Understand the concept of value added in the context of GDP.

Distinguish between expenditures included and excluded in the consumption component of GDP.

Understand the role of government spending, net exports, and investments in GDP calculation.

Recognize how GDP reflects the economic performance of a country.

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Definitions:

Flexibility

Ability to tolerate a mismatch (discorrespondence) between needs and rewards.

Theory of Work Adjustment

A psychological theory explaining how workers adjust to their jobs by balancing their abilities with job demands and their needs with job rewards.

Celerity

The quality of being quick or prompt; swiftness of action or motion.

Endurance

Sustaining of interaction with the environment.