The Demand Curve for Labor Slopes Downward Because

question 247

Multiple Choice

The demand curve for labor slopes downward because

• A)few workers work at low wages.
• B)capital has been substituted for labor in most industries.
• C)of the diminishing marginal product of labor.
• D)All of the above are true.

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Definitions:

Market Rate

The prevailing interest rate available in the overall financial market for securities or loans of a similar risk and maturity profile.

Annual Interest

The total amount of interest payable on a loan, bond, or other financial instrument over the course of a year.

Market Rate

The current interest rate offered in the market for instruments with similar risk and maturity levels.

Present Value Factor

A financial calculation used to determine the present value of a sum of money to be received in the future by accounting for time value of money.