If the Price of a Good Increases, Then in the Market

question 177

Multiple Choice

If the price of a good increases, then in the market for the type of labor needed to produce this good,

• A) employment will decrease.
• B) the labor supply will increase.
• C) the marginal product (MP) of labor will increase.
• D) the marginal revenue product (MRP) of labor will increase.

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Definitions:

Required Rate of Return

The minimum percentage return that an investor expects to receive from an investment, considering its risk.

Straight-Line Depreciation

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Simple Rate of Return

A method to determine the efficiency of an investment, calculated by dividing the annual incremental net operating income by the initial investment's cost.

Investment Project

A project involving the allocation of resources with the expectation of future returns, such as profits or benefits.