Suppose That the Market for Labor Is Initially in Equilibrium

question 161

Multiple Choice

Suppose that the market for labor is initially in equilibrium. If the firm employs labor-augmenting technology, the equilibrium wage

• A)and the equilibrium quantity of labor will rise.
• B)and the equilibrium quantity of labor will fall.
• C)will rise, and the equilibrium quantity of labor will fall.
• D)will fall, and the equilibrium quantity of labor will rise.

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Definitions:

Freudian

Relating to or based on the theories of Sigmund Freud, especially those concerning the unconscious mind, psychosexual development, and defense mechanisms.

Magnetic Fields

Invisible fields that exert a force on substances that are sensitive to magnetism, including ferromagnetic materials and moving electric charges.

Experimental Procedure

A methodical approach carried out with the intention of verifying, falsifying, or establishing the validity of a hypothesis.

ECT

Electroconvulsive Therapy, a psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.