If Wage Rates Are Set in Long-Term Contracts and Suddenly

question 51

Multiple Choice

If wage rates are set in long-term contracts and suddenly the demand for labour decreases,then

• A)the quantity demanded is more than the quantity supplied.
• B)the equilibrium wage rises to equate demand and supply.
• C)there is no change.
• D)the quantity demanded is less than the quantity supplied.
• E)there is a shortage of labour.

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Definitions:

Psychoeducational

An approach combining psychological theory and educational techniques to address and alleviate learning and behavioral issues.

Psychoanalytic

Relating to a theory and method of psychological treatment that emphasizes unconscious processes affecting behavior.

Poverty Of Thought

A reduction in the quantity and quality of thought, often manifesting in concrete and simplistic thinking.

Negative Symptom

In psychiatry, symptoms indicating an absence or lack of functions or behaviors normally present, often associated with conditions like schizophrenia.