If the Wage Rate Increases and Firms in a Perfectly

question 329

Multiple Choice

If the wage rate increases and firms in a perfectly competitive industry are hiring labor, then

• A) the firms will quit using labor.
• B) profits will increase.
• C) market supply will decrease.
• D) market price will decrease.

---

Definitions:

IQ

An abbreviation for Intelligence Quotient, a score derived from standardized tests designed to measure human intelligence and cognitive abilities.

Meritocracy

Meritocracy is a system where individuals are rewarded and advanced based on their talents, abilities, and effort rather than their social status or background.

Homogeneous

Consisting of parts or elements that are all the same or similar in nature, often used to describe groups, substances, or systems that are uniform in composition.

Educational Attainment

The greatest degree of schooling that someone has achieved.