An Increase in the Size of the Working-Age Population

question 28

Multiple Choice

An increase in the size of the working-age population:

• A)increases labor demand.
• B)decreases labor demand.
• C)increases labor supply.
• D)decreases labor supply.

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Definitions:

Differential Costs

The difference in total cost that will result from selecting one choice over another.

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.