Suppose an Increase in the Demand for Labor Results in an Increase

question 435

Multiple Choice

Suppose an increase in the demand for labor results in an increase of $4 per hour in the equilibrium wage. How does the increase in the demand for labor affect the value of the marginal product of labor (VMPL) ?

• A)The VMPL increases by less than $4.
• B)The VMPL increases by $4.
• C)The VMPL increases by more than $4.
• D)The VMPL decreases by $4.

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The state of being alike or sharing common features.

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The quality of being trusted and believed in, often assessed in sources of information or individuals presenting arguments.

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The quality of being reliable, dependable, and worthy of trust based on honesty, integrity, and reliability.

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The effect of physical or psychological proximity on the formation of relationships and people's attraction to each other.