Suppose That the Market for Labor Is Initially in Equilibrium

question 538

Multiple Choice

Suppose that the market for labor is initially in equilibrium. If the firm employs labor-saving 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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Credit Card Debt

A type of unsecured liability which accrues when a consumer purchases goods or services with a credit card and fails to pay back the borrowed amount within the stipulated period.

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A personal loan used to purchase a car, paid back in installments over a period of time, usually with interest.

Mortgage Rate

The interest rate charged on a mortgage, determining the size of the monthly payments by the borrower to the lender.