The Following Figure Shows Wage Versus Labor Demand

question 88

Multiple Choice

The following figure shows wage versus labor demand.

-Refer to the figure above.If a new technology is developed that increases the marginal productivity of all workers,what will happen to the wage rate and quantity of labor?

• A) The wage rate will increase, and the quantity of labor will decrease.
• B) The wage rate will decrease, and the quantity of labor will increase.
• C) Both the wage rate and quantity of labor will increase.
• D) Both the wage rate and quantity of labor will decrease.

Analyze the effects of changes in the price of capital and labor on employment decisions.

Identify industry trends and growth occupations in the U.S. economy.

Recognize the role of product demand in influencing labor demand.

Explain the impact of complementary and substitute resources on labor and product markets.

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Definitions:

Generalized Anxiety Disorder

A chronic disorder characterized by excessive, long-lasting anxiety and worry about nonspecific life events, objects, and situations.

Compulsion

An irresistible urge to perform an irrational or unnecessary action repeatedly.

Obsession

Persistent, intrusive, and unwanted thoughts or images that cause significant anxiety or distress.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event.