If Energy and Unskilled Labor Are Gross Complements,an Increase in the Price

question 33

Multiple Choice

If energy and unskilled labor are gross complements,an increase in the price of energy will:

• A)increase the supply of unskilled labor,decreasing the unskilled wage
• B)increase the demand for unskilled labor,raising the unskilled wage
• C)decrease the demand for unskilled labor,decreasing the unskilled wage
• D)either increase or decrease the demand for unskilled labor,depending on the relative strengths of the output effect and the substitution effect

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Definitions:

Oversubscription

The situation in which the demand for an initial public offering (IPO) of company shares exceeds the quantity available.

Share Offer

The issuance of shares by a company to existing or potential investors, often to raise capital for business operations or expansions.

Calls in Advance

Money received by a company from shareholders before their shares have been issued to them, often applied towards future calls on shares.

Share Issuance Costs

Expenses associated with the issuance of new shares, such as underwriting, legal, and registration fees.