Figure 19-5 -Refer to Figure 19-5. Suppose This Market Begins with Demand

question 231

Multiple Choice

Figure 19-5
-Refer to Figure 19-5. Suppose this market begins with demand for labor, D1, and supply of labor, S1, but the labor supply curve shifts to S2. Which of the following statements best describes the results?

• A)Fewer workers are employed, but those who are employed earn a higher wage.
• B)More workers are employed but they earn a lower wage.
• C)More workers are employed and they earn a higher wage.
• D)The same number of workers are employed and they earn a higher wage.

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Definitions:

Dissonance

A psychological state of tension that occurs when an individual holds two or more contradictory beliefs, attitudes, or values at the same time.

Attitudes

An established pattern of thoughts or sentiments directed towards a person or thing that usually influences one's actions.

Behaviors

The actions or reactions of individuals or groups in response to external or internal stimuli.

Social Learning

A theory that suggests people learn new behaviors and acquire new information by observing and mimicking others, as well as through direct instruction.