An Increase in the Price of Aluminum Increases the Cost

question 150

Multiple Choice

An increase in the price of aluminum increases the cost of producing aluminum products and reduces the demand for aluminum workers.This decrease in labor demand would be caused by which change in a determinant of labor demand?

• A) A fall in labor productivity
• B) An increase in product demand
• C) A decrease in product demand
• D) An increase in the price of another resource

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Definitions:

Rationing Coupons

Tickets or coupons issued by the government or an organization, allowing the holder to purchase a fixed amount of a scarce commodity or service.

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.

Queuing System

A queuing system is a model used to analyze and manage the process by which customers wait for service or goods, focusing on efficiency and fairness.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.