Given the Slower Growth in the Demand for Labor in the United

question 33

Multiple Choice

Given the slower growth in the demand for labor in the United States since 1973, the large increases in employment must be the result of:

• A) decreases in the supply of labor.
• B) decreases in the demand of labor.
• C) increases in the supply of labor.
• D) increases in the real wage.

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Definitions:

Absolute Advantage

A situation in which a person or economy can produce more of a good with the same amount of resources as someone else.

Inputs

Resources such as labor, raw materials, and capital that are used in the production process to create goods or services.

Gain From Trade

The benefit obtained by countries, organizations, or individuals from engaging in exchange or trade.

Absolute Advantage

The ability of an entity to produce a good or offer a service more efficiently than its competitors when using the same amount of resources.