Consider the Labor Market for Computer Programmers,which Is in Equilibrium

question 152

Multiple Choice

Consider the labor market for computer programmers,which is in equilibrium.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,what effect did this process have on the labor market for computer programmers?

• A)The equilibrium wage increased, and the equilibrium quantity of labor increased.
• B)The equilibrium wage increased, and the equilibrium quantity of labor decreased.
• C)The equilibrium wage decreased, and the equilibrium quantity of labor increased.
• D)The equilibrium wage decreased, and the equilibrium quantity of labor decreased.

---

Definitions:

Patent

A grant from the government that gives an inventor the exclusive right to make, use, and sell an invention for a period set by Congress.

Business

The activity of making, buying, or selling goods or providing services in exchange for money, within an organizational or entrepreneurial context.

Plan

A detailed proposal for doing or achieving something, often involving a series of steps or actions intended to accomplish a specific goal.