Suppose That the Labor Market for Life Guards Is Initially

question 368

Multiple Choice

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. 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:

Moral Wrongdoing

Actions or behaviors that are considered unethical or immoral based on societal or personal moral standards.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., to enrich a community or organization.

Ethical Pluralism

The belief that there are multiple ethical principles which can be valid, but might come into conflict in certain situations, requiring a balance or choice to be made.

Absolutism

A political theory or form of government in which absolute power is vested in a single ruler or authority.