Suppose That the Market for Labor Is Initially in Equilibrium

question 518

Multiple Choice

Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67. Then the equilibrium wage

• A)and the equilibrium quantity of labor will rise.
• B)and the equilibrium quantity of labor will fall.
• C)will rise, and the equilibrium quantity of labor will fall.
• D)will fall, and the equilibrium quantity of labor will rise.

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Definitions:

Management Strategy

An overarching plan or set of goals designed to achieve competitive advantage and meet organizational objectives.

Content Theories

Theories in psychology and management that explain the specific things that motivate individuals at work, focusing on the content of those motivators.

Human Needs

Fundamental physiological and psychological requirements that motivate individuals and influence their behavior.

Reinforcement Theories

Psychological theories suggesting that behavior can be shaped by controlling the consequences that follow those behaviors, often applied in organizational settings to motivate employees.