The Market Demand Curve for Labor

question 119

Multiple Choice

The market demand curve for labor

• A)is determined by adding up the quantity of labor demanded by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers.
• B)is the same as the market demand curve for the product labor produces because it is a derived demand.
• C)is determined by adding up the demand for labor by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers.
• D)is perfectly inelastic because there is a finite number of workers in the market for labor.

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Definitions:

Budgets

Financial plans outlining expected revenues and expenditures for a specific period.

Activity Variances

Differences between planned activity costs and the actual costs incurred for those activities.

Cost Drivers

Factors that cause the cost of an activity or operation to increase or decrease, such as machine hours, labor hours, or the volume of production.

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity, providing a more useful comparison of actual to budgeted performance.