Which of the Following Would Cause the Equilibrium Price of Labor

question 27

Multiple Choice

Which of the following would cause the equilibrium price of labor to increase?

• A) A decrease in the price of the product that labor is helping to produce.
• B) The use of a larger stock of capital with the labor force.
• C) An increase in the desire for leisure.
• D) A more efficient method of combining labor and capital in the production process.

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Definitions:

Unique Factor

A distinct element or characteristic that differentiates one object, situation, or individual from others.

Subjective Norms

Beliefs about whether important people approve or disapprove of a certain behavior, which can influence an individual's intention to engage in that behavior.

Transtheoretical Model

A theory of behavioral change that assesses an individual's readiness to act on a new healthier behavior, through stages like precontemplation, contemplation, preparation, action, and maintenance.

James Prochaska

A psychologist best known for his role in developing the Transtheoretical Model of behavior change.