We Would Expect That a Fall in Labor Supply Will

question 21

Multiple Choice

We would expect that a fall in labor supply will have a proportionately larger effect on the market wage rate when

• A) capital goods exist that can replace many of the workers.
• B) the product produced in the industry has several close substitutes.
• C) the product produced in the industry makes up a large portion of most families' budgets.
• D) labor represents a relatively small portion of total costs.

---

Definitions:

Jonathan Haidt

A psychologist known for his research on morality, emotions, and the moral foundations theory.

Lawrence Kohlberg

A psychologist known for his theory of moral development, which proposes that morality progresses through a series of stages.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development in children.

Identity

The sense of self, characterized by one's beliefs, personality traits, appearance, and how these are perceived by oneself and others.