A Labor System Whereby a Limited Number of Workers Can

question 18

Multiple Choice

A labor system whereby a limited number of workers can be certified to work in a particular field but are of higher ability because of the training necessary for certification will cause

• A)the demand for these workers to decrease.
• B)the wage paid to these workers to increase.
• C)the supply for these workers to increase.
• D)the supply curve for these workers to become horizontal at some point.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced from a fixed set of resources in a given period.

Opportunity Cost

Represents the value of the next best alternative forgone when a decision is made to choose one option over others.

Factors Of Production

Factors of production are the inputs needed for the creation of a good or service, including land, labor, capital, and entrepreneurship.

Unemployment Of Resources

Unemployment Of Resources refers to a situation where factors of production, such as labor and capital, are not being used in the production process.