Suppose That the Labor Market for Life Guards Is Initially

question 510

Multiple Choice

Suppose that the labor market for life guards is initially in equilibrium. Then a new television series debuts which glamorizes the social opportunities for life guards. 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:

Annual Dividend

The total amount of dividend that a company pays to its shareholders in a year.

Rate of Return

A financial metric expressing the percentage of profit or loss on an investment over a specific period, serving as a key indicator of investment efficiency.

Dividends Reduction

A decrease in the amount of dividends distributed to shareholders, often indicating a change in the company's profit distribution policy or financial health.

Rate of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.