Wage Rate Quantity of Labor Demanded $16 800

question 202

Multiple Choice

Wage Rate Quantity of Labor Demanded $16 800
14 1,000
12 1,200
10 1,600
8 1,800
Refer to the given data.Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $8 to $10.As a result of the wage increase, firms will hire

• A)fewer workers, and the total paid out for wages will decline.
• B)fewer workers, but the total paid out for wages will increase.
• C)fewer workers, but the total paid out for wages will remain unchanged.
• D)more capital, if capital and labor are used in fixed proportions in production.

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Definitions:

Cognitive Dissonance

The conflict (i.e., remorse) that buyers feel after making a major purchase.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, and about the past, present, and potential customers for the product or service.

Cognitive Dissonance

A psychological term referring to the mental discomfort experienced when holding two or more conflicting beliefs, values, or ideas simultaneously.

Market Research

The process of gathering information about consumers that will improve marketing efforts.