Which Is an Example of a Change in the Price

question 98

Multiple Choice

Which is an example of a change in the price of another resource that decreases labor demand?

• A) A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry.
• B) The rise of hair salons for both men and women reduces the demand for barbers.
• C) A decrease in the educational skills of manufacturing workers decreases the demand for such workers.
• D) An increase in the price of chemical equipment increases the cost of producing fertilizer,thus decreasing the demand for workers who make fertilizer.

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Definitions:

Typical Welfare

Governmental support programs designed to assist individuals or families in meeting basic needs, such as food, shelter, and healthcare.

Family

A social unit consisting of individuals related by blood, marriage, or other forms of partnership and commitment.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Economic Rent

It is the payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In other words, it's the extra income earned from a resource without investing in additional effort or cost.