Suppose That the Market for Labor Is Initially in Equilibrium

question 38

Multiple Choice

Suppose that the market for labor is initially in equilibrium.If the firm employs labor-augmenting technology,

• A) the equilibrium wage and the quantity of labor will both rise.
• B) the equilibrium wage and the quantity of labor will both fall.
• C) the equilibrium wage will rise and the quantity of labor will fall.
• D) the equilibrium wage will fall and the quantity of labor will rise.

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Definitions:

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A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders, aiming to contribute positively to society.

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The process or stage where a business starts generating a financial gain or profit beyond its operational costs and expenses.

Microfinance

A source of financial services for entrepreneurs and small businesses lacking access to banking and entrepreneurial training.

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