Suppose an Increase in the Demand for Labor Results in an Increase

question 435

Multiple Choice

Suppose an increase in the demand for labor results in an increase of $4 per hour in the equilibrium wage. How does the increase in the demand for labor affect the value of the marginal product of labor (VMPL) ?

• A)The VMPL increases by less than $4.
• B)The VMPL increases by $4.
• C)The VMPL increases by more than $4.
• D)The VMPL decreases by $4.

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Definitions:

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it within working memory or to encode it for long-term memory.

Retrograde Amnesia

A condition in which people lose the ability to access memories they had before a brain injury.

New Memories

Information or experiences that have been recently encoded into an individual's memory system.

Anterograde Amnesia

A condition in which people lose the ability to form new memories after experiencing a brain injury.