If the Wage Rate in a Purely Competitive Labor Market

question 75

Multiple Choice

If the wage rate in a purely competitive labor market increases, it will cause the

• A)marginal resource cost curve for a single competitive firm in the industry to shift down.
• B)marginal resource cost curve for a single competitive firm in the industry to shift up.
• C)labor supply curve for a single competitive firm to shift downward.
• D)labor supply curve for the industry to shift rightward.

---

Definitions:

Prospect Theory

A theory in behavioral economics explaining the decision-making process of individuals when faced with alternatives that have uncertain outcomes, with known probabilities of these outcomes.

Behavioral Economics

A field of economic research that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Policymakers

Individuals or groups responsible for making decisions and laws that govern a society, often within governmental institutions.

Neuroscience

The scientific study of the nervous system, including its structure, functions, and abnormalities.