When Labor Supply Increases

question 176

Multiple Choice

When labor supply increases,

• A)the marginal productivity of workers always increases.
• B)profit-maximizing firms reduce employment.
• C)wages increase as long as labor supply is upward sloping.
• D)wages decrease as long as labor demand is downward sloping.

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Definitions:

Aniline

An organic compound, specifically an amine derived from benzene, widely used in dyes and polymers.

Acetanilide

An organic compound that acts as a precursor in the synthesis of penicillin and other pharmaceuticals, known for its fever-reducing and pain-relieving properties.

Acetyl Chloride

Acetyl chloride is a colorless organic compound known for its reactivity and use as an acylating agent in organic synthesis.

Ethanol

A volatile, flammable, colorless liquid alcohol, commonly used as a solvent, in medical applications, and as a recreational beverage.