If a New Computer Program Was Developed That Dramatically Improved

question 11

Multiple Choice

If a new computer program was developed that dramatically improved productivity in most firms,what would happen in the labor market?

• A) The real wage would not change but employment would decrease.
• B) The real wage would increase and employment would decrease.
• C) The real wage would decrease and so would employment.
• D) The real wage would decrease and employment would increase.
• E) The real wage would increase and so would employment.

---

Definitions:

Pharynx

The muscular tube that connects the mouth and nasal passages with the esophagus and larynx, playing a key role in both the respiratory and digestive systems.

Bolus

A small rounded mass of a substance, especially of chewed food at the moment of swallowing.

Esophagus

The part of the digestive tract that conducts food from the pharynx to the stomach.

Amylase

An enzyme that catalyzes the hydrolysis of starch into sugars, present in saliva and pancreatic fluid.