A Slump in One Industry Could Increase the Relative Attractiveness

question 142

Multiple Choice

A slump in one industry could increase the relative attractiveness of another industry:

• A) increasing the quantity of labor supplied in the latter.
• B) decreasing the quantity of labor supplied in the latter.
• C) increasing the quantity of labor demanded in the latter.
• D) decreasing the quantity of labor demanded in the latter.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly limitless human wants in a world of limited resources, which leads to the necessity of making choices on how to allocate resources efficiently.

Rewarded

Pertains to receiving a benefit or compensation in return for an action or service.

George Homans

An American sociologist known for his work in developing social exchange theory, explaining social behavior in terms of costs, benefits, and expectations of rewards.

Success

The achievement of a goal or objective, often recognized through the attainment of fame, wealth, or social status.