If Workers Become More Productive,which of the Following Would Happen

question 7

Multiple Choice

If workers become more productive,which of the following would happen in the labor market?

• A) Labor supply would increase.
• B) Labor supply would decrease.
• C) Labor demand would increase and labor supply would decrease.
• D) Labor demand would decrease and so would labor supply.
• E) Labor demand would increase.

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Definitions:

Expected Interest Rate

The anticipated rate at which interest is to be paid by a borrower for the use of money.

Municipal Bonds

Bonds issued by local government or municipalities, typically offering tax-exempt interest payments.

Corporate Bonds

Debt securities issued by corporations to raise capital, where the issuer promises to repay the borrowings plus interest.

Callable Debenture

A type of bond that can be redeemed by the issuer before its maturity date at a predetermined price.