Suppose That the Market for Labor Is Initially in Equilibrium

question 538

Multiple Choice

Suppose that the market for labor is initially in equilibrium. If the firm employs labor-saving technology, 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:

Restricted Affect

A symptom in which emotional expression is reduced or absent.

Anhedonia

The inability to feel pleasure in normally pleasurable activities.

Delusions of Reference

False beliefs that insignificant remarks, events, or objects in one's environment have personal meaning or significance.

Grandiose Delusion

A false belief of one's own superiority, greatness, or omnipotence that is not grounded in reality.