When the Supply of Labor Increases, According to the

question 123

Multiple Choice

When the supply of labor increases, according to the
Specific­factors model, which of the following is likely to
Happen in the sending country?

• A)The number of workers employed will decrease.
• B)The wages for workers will rise.
• C)The marginal product of labor shifts to the right.
• D)All of these are likely to happen in the sending country.

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Definitions:

Monopsonist

A market condition where a single buyer substantially controls the market as the major purchaser of goods and services.

Workers Hired

The number of employees that businesses employ or bring into their workforce.

Marginal Expenditure Curve

A graph showing the additional cost incurred from purchasing an additional unit of a good or service.

Market Supply Curve

The market supply curve graphically represents the relationship between the total quantity of a good that producers are willing to supply and the price of the good.