The Demand for Labor Curve Is

question 88

Multiple Choice

The demand for labor curve is

• A)a horizontal line because we assume that the real wage rate is fixed.
• B)downward sloping, showing that the quantity of labor demanded increases when the real wage falls.
• C)a vertical line because firms have to hire labor.
• D)upward sloping, showing that as the real wage rate increases, more workers are hired.
• E)U-shaped.

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Definitions:

Normative Statements

Assertions about how the world ought to be, involving opinions and subjective judgements.

Rational Choice

A theory assuming individuals use logical calculations to make prudent decisions that provide them with the greatest benefit or satisfaction.

Facts

Data or information based on real occurrences or truths used for analysis, decision-making, or proving arguments.

Theories

Systematic ideas or principles formulated to explain phenomena, provide understanding, and predict future occurrences.