Which of the Following Statements Is True

question 118

Multiple Choice

Which of the following statements is true?

• A) A higher wage can reduce the quantity of labor supplied.
• B) A higher wage can increase the quantity of labor demanded.
• C) A higher wage can raise profits if the productivity of workers is fixed.
• D) A higher wage can raise profits if productivity is directly proportional to wages.

---

Definitions:

Money Supply

The overall available monetary assets within an economy at a designated time.

Nominal Variables

Variables measured in monetary units.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, indicating the cost of living or inflation.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.