In the Model with an Upward Sloping Supply Curve of Labour

question 27

Multiple Choice

In the model with an upward sloping supply curve of labour and increase demand for labour due to a positive technological, A, change:

• A)increases employment and the real wage.
• B)decreases employment and increases the real wage.
• C)decreases employment and the real wage.

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Definitions:

Solvency

Indicates the ability of a company or individual to meet long-term financial obligations; solvency is crucial for staying operational and avoiding bankruptcy.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value.

Working Capital

This refers to the amount by which current assets exceed current liabilities, indicating the liquidity available to a business for day-to-day operations.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.