Suppose the Wage Rate in a Certain Industry Falls, and Firms

question 182

Multiple Choice

Suppose the wage rate in a certain industry falls, and firms hire more workers. The best explanation of this is that labor

• A) demand fell.
• B) demand increased.
• C) supply fell.
• D) supply increased.

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Definitions:

Real Per Capita Income

Income per person, adjusted for inflation, reflecting the average income level of individuals within a country or region.

Bottom Quintile

Refers to the lowest fifth portion of a population sorted by income or wealth.

Economic Inequality

The unequal distribution of wealth, income, or economic resources among participants in an economy.

Tax Returns

Official documents filed with a government body that reports income, expenses, and other pertinent tax information.