When the Supply of Workers Is Scarce, One Would Predict

question 51

Multiple Choice

When the supply of workers is scarce, one would predict that market wages would be:

• A)determined solely by factors that affect demand
• B)determined outside the domain of the neoclassical theory
• C)high, other things being equal
• D)low, other things being equal

---

Definitions:

Farm Equipment

Machinery and tools used in the farming industry for the purposes of planting, harvesting, and caring for crops.

Net Exports

The difference between the value of a country's exports and the value of its imports.

Saving

The act of putting money aside, typically in a secure place, for future use or investment.

Domestic Investment

The total capital expenditure on physical assets (like buildings, machinery, and equipment) within a country's borders to produce goods and services.