If the Demand for Labor Decreases,then the Equilibrium Wage Rate

question 142

Multiple Choice

If the demand for labor decreases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

• A) falls; increases
• B) might rise, fall, or not change; increases
• C) rises; might increase, decrease, or not change
• D) falls; decreases
• E) falls; does not change

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Definitions:

Systematic Errors

Suboptimal choices that (1) are not rational because they do not maximize a person’s chances of achieving his or her goals and (2) occur routinely, repeatedly, and predictably.

Neoclassical Economics

An economic theory that focuses on how the perception of utility and costs influence the supply and demand equilibrium.

Complementary

Products or services that enhance or are used together with another, increasing the value or usability of either.

Self-interest

The pursuit of personal advantage and well-being, often driving economic decisions.