If the Price of Output in an Industry Rises, Firms

question 43

Multiple Choice

If the price of output in an industry rises, firms in that industry will ______ labor.

• A) increase their demand for
• B) increase their supply of
• C) decrease their demand for
• D) decrease their supply of

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Definitions:

Criterion Measure

A standard or benchmark against which the validity of a test score or the performance of an individual can be evaluated.

Grade Point Average

A numerical calculation representing the average value of the accumulated final grades earned in courses over time.

Item Analysis

A series of statistical tests and procedures that can be used to assess for homogeneity in a test.

Construct Validity

The degree to which a test accurately measures the theoretical construct or concept it is intended to measure.