Inventia Has 1 Million Workers

question 17

Multiple Choice

Inventia has 1 million workers.Suppose 50,000 workers migrate from a neighboring country to join Inventia's workforce.Which of the following will happen in this case if Inventia's physical capital stock remains unchanged?

• A) The marginal contribution of labor to Inventia's output will fall.
• B) The relationship between output and physical capital stock becomes negative.
• C) The total efficiency units of labor in the economy will decrease.
• D) The country's income per worker will increase.

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Definitions:

Increase Profits

Increase Profits means enhancing the financial gain left after subtracting the expenses from the total revenues, aiming for a higher bottom line through various strategies like reducing costs or increasing sales.

Lower Total Costs

Achieving a reduction in the aggregate amount of expenditures necessary for production or provision of services.

Price Discrimination

The strategy of selling the same product to different customers at different prices, based on their willingness to pay.

Deadweight Loss

Deadweight Loss is the loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved, often due to market distortions like taxes or subsidies.