Which of the Following Factors Has Significantly Increased the Supply

question 89

Multiple Choice

Which of the following factors has significantly increased the supply of labor in the United States since 1950?

• A)a large increase in the substitution effect as a result of higher wages
• B)a low birth rate and an aging population
• C)an increase in the number of people who have received college degrees
• D)an increase in the labor force participation rate of women

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Definitions:

Individual Preferences

The personal likes or dislikes of an individual, which influence their decisions and behavior.

Social Preferences

Social Preferences indicate how individuals’ decision-making is influenced by the welfare of others, beyond self-interest.

Transitivity

In decision theory, the principle that if option A is preferred over B, and B is preferred over C, then A should be preferred over C.

Arrow's Impossibility Theorem

A theory indicating it is impossible to formulate a social preference ordering that satisfies all of a specific set of reasonable criteria when voters have three or more options.