For Any Competitive Labor Market, What Change Would Have to Occur

question 137

Multiple Choice

For any competitive labor market, what change would have to occur to cause labor supply to increase and the labor supply curve to shift to the right?

• A)Number of firms increases
• B)Opportunity cost of work decreases
• C)Number of workers decreases
• D)Opportunity cost of work increases

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Definitions:

Extended Warranty

An additional warranty that extends beyond the original manufacturer's warranty, typically for an extra fee.

Product Price

The cost at which a particular good or service is sold to customers.

Warranty Purchasers

Individuals or entities who buy a warranty, typically an agreement for repair or replacement of a product, should it fail within a specified period.

Adverse Selection

A situation in which asymmetric information leads to the selection of undesirable alternatives in transactions.