We Would Expect That a Fall in Labor Supply Will

question 72

Multiple Choice

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

• A) workers can easily be replaced by capital goods.
• B) the product produced in the industry has very few substitutes.
• C) the product is produced in a perfectly competitive industry.
• D) labor represents a relatively small portion of total costs.

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Definitions:

Criteria

Criteria are standards or principles by which something is judged or decided.

Qualifying Child

A dependent who meets certain conditions set by the IRS, related to age, relationship, residency, and support, allowing a taxpayer to claim certain tax benefits.

Child Tax Credit

A tax benefit aimed at helping families offset the cost of raising children by reducing their tax liability.

Lifetime Learning Credit

A tax credit available to individuals for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.