If the Labor Supply Is Unchanged, an Increase in the Demand

question 24

Multiple Choice

If the labor supply is unchanged, an increase in the demand for labor will

• A)increase the equilibrium wage and decrease the number of workers employed.
• B)increase the equilibrium wage and increase the quantity of jobs demanded.
• C)decrease the equilibrium wage and increase the number of workers employed.
• D)increase the equilibrium wage and increase the number of workers employed.

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Definitions:

Base Year

A base year is a specific year against which economic growth is measured, often used as a reference point for the calculation of index numbers.

Initial Endowment

The initial quantity of goods, services, wealth, or resources that an individual or entity possesses.

Health Care Reform

A process of changing policies, regulations, and practices to improve the quality, accessibility, and cost-effectiveness of health care systems.

Taxes Rise

An increase in the amount of money that taxpayers must pay to the government, typically resulting from legislative changes.