Consider the Labor Market for Computer Programmers

question 63

Multiple Choice

Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers? The equilibrium wage

• A)increased, and the equilibrium quantity of labor increased.
• B)increased, and the equilibrium quantity of labor decreased.
• C)decreased, and the equilibrium quantity of labor increased.
• D)decreased, and the equilibrium quantity of labor decreased.

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Definitions:

Trade-in Allowance

The amount credited to the buyer by the seller for a traded item, reducing the cost of the new purchase.

Book Value

The net value of a company's assets found on its balance sheet, and is calculated by subtracting liabilities from the total assets.

Adjusting Entries

The journal entries that bring the accounts up to date at the end of the accounting period.

Accounting Period

A specific time period in which all financial transactions are recorded and financial statements are prepared.