Which of the Following Is a Long-Run Impact of an Increase

question 207

Multiple Choice

Which of the following is a long-run impact of an increase in the wage?

• A) The quantity demanded of labor increases because there are no diminishing returns.
• B) The quantity demanded of labor increases because the marginal revenue product curve shifts upward due to a higher product price.
• C) The quantity demanded of labor decreases because firms face a higher degree of diminishing returns.
• D) The quantity demanded of labor decreases because firms will have an incentive to use more of other inputs instead of labor.

---

Definitions:

Unilateral Contract

A contract where only one party promises a reward in exchange for the performance of a specific act by the other party.

Contract Formality

Contract formality refers to the requisite legal formalities and procedures, such as written documentation or specific terms, necessary for a contract to be considered valid and enforceable.

Quasi Contract

A legal concept where courts impose a contract-like obligation on a party to prevent unjust enrichment, even though no real contract exists between the parties involved.

Oral Contract

An agreement between parties that is made through spoken words and is legally binding, although it may be difficult to prove.