Suppose That the Labor Market for Life Guards Is Initially

question 124

Multiple Choice

Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?

• A)Both the equilibrium wage and quantity increase.
• B)Both the equilibrium wage and quantity decrease.
• C)The equilibrium wage increases, and the equilibrium quantity decreases.
• D)The equilibrium wage decreases, and the equilibrium quantity increases.

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Definitions:

Bulldog Bond

A bond issued in the United Kingdom by foreign entities, denominated in British pounds, as part of international finance.

Subordinated Debentures

A type of debt instrument that ranks below other debts in case of liquidation or bankruptcy.

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A type of debt instrument that is not secured by physical assets or collateral but is based on the issuer's creditworthiness and reputation.

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High-yield bonds with a lower credit rating than investment-grade bonds, reflecting a higher risk of default.