When a Firm Decides to Hire More Workers Because Local

question 151

Multiple Choice

When a firm decides to hire more workers because local wage rates have decreased, this is an example of

• A) market failure.
• B) substitution in production.
• C) labor exploitation.
• D) substitution in consumption.

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Definitions:

Mediated Settlement

A resolution of a dispute facilitated by a neutral third-party mediator without the need for court intervention.

Court

An institution established to administer justice through the interpretation of laws and the adjudication of legal disputes.

Writ of Mandamus

A court order mandating that a public agency or governmental body perform an act required by law when it has neglected or refused to do so.

Writ of Certiorari

A court order requesting the lower court to deliver its record in a case so that the higher court may review it.