A Technological Advance That Increases Labor Productivity Will

question 51

Multiple Choice

A technological advance that increases labor productivity will:

• A) decrease the demand for labor as MP falls.
• B) decrease the demand for labor as fewer workers are needed.
• C) decrease the supply of labor as fewer workers are needed.
• D) increase the demand for labor as MP rises.

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Definitions:

Insurance Premiums

Payments made to an insurance company in exchange for coverage, typically paid on a monthly or annual basis.

Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices.

Adverse Selection

A situation in which one party in a transaction possesses information that the other party does not, leading to an imbalance in the exchange, often seen in insurance markets.

Insurance Market

A market where individuals or entities can transfer or share risk by purchasing insurance policies from insurers, who assume the risk in exchange for premiums.