If the Supply of Labour Decreases,which of the Following Events

question 11

Multiple Choice

If the supply of labour decreases,which of the following events will occur?

• A)The wage rate will decrease and firms will increase the number of workers to the point at which the value of marginal product equals the new wage rate.
• B)The wage rate will decrease and firms will decrease the number of workers to the point at which the value of marginal product equals the new wage rate.
• C)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product equals the new wage rate.
• D)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product is greater than the new wage rate.
• E)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product is less than the new wage rate.

---

Definitions:

International Labour Organization

A United Nations agency that sets international labor standards and promotes rights at work.

Rights Of Workers

Refers to the legal and ethical entitlements of employees in the workplace, covering aspects such as fair pay, safe working conditions, and freedom from discrimination.

Specialized Agency

An organization focused on a specific sector or field, offering expert services or products tailored to its unique demands and challenges.

Host Country

A country in which an international corporation operates.