As the Price Level Falls,real Wage ____________And People Choose to Work

question 135

Multiple Choice

As the price level falls,real wage ____________and people choose to work ___________.

• A) rises; more
• B) rises; less
• C) falls; more
• D) falls; less

Recognize the historical context of labor stability and employment rights in the early 20th century.

Comprehend the mainstream economic perspective on efficiency, equity, and voice in the employment relationship.

Analyze the impact of competition on labor according to mainstream economics.

Identify the primary causes of the labor problem according to different schools of thought.

---

Definitions:

Preferred Stock

A type of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Constant Growth

A model assuming a company's dividends will continue to grow at a consistent rate indefinitely.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a regular basis.