In the Long Run, a Decrease in the Competitive Wage

question 17

Multiple Choice

In the long run, a decrease in the competitive wage will be associated with which of the following?

• A)A substitution effect in favor of employing more capital.
• B)A scale effect in favor of employing more labor.
• C)More employment if the wage decrease was a result of a decrease in the demand for labor.
• D)Less employment if the wage decrease was a result of an increase in the supply of labor.
• E)An increase in the output price.

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Definitions:

Job Interview

A formal meeting in which an employer evaluates a potential employee's suitability for a position.

Open-Ended Questions

Questions formulated to elicit responses with more depth and range, allowing for detailed answers beyond a simple yes or no.

Casual Attire

Clothing that is comfortable and informal, suitable for everyday wear rather than formal occasions.

Criticizing Employers

The act of expressing disapproval or finding faults with one's employers or workplace, potentially pointing out areas needing improvement or expressing discontentment.