The Main Effect of a Decrease in Labor Demand That

question 14

Multiple Choice

The main effect of a decrease in labor demand that arises from a decrease in capital stock is

• A) shifts in unemployment.
• B) a need for fewer immigrant workers.
• C) lower real wages.
• D) companies make fewer profits.

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Definitions:

Novelty

The quality of being new, unique, or interesting.

Purchase Behavior

The decision-making process and actions of consumers regarding the buying of products or services.

Latin America

A region that includes countries in the Americas where Romance languages are spoken, primarily Spanish and Portuguese.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, known for its varied geography, rich history, and cultural diversity.