If the Labor Supply Is Unchanged, an Increase in the Demand

question 24

Multiple Choice

If the labor supply is unchanged, an increase in the demand for labor will

• A)increase the equilibrium wage and decrease the number of workers employed.
• B)increase the equilibrium wage and increase the quantity of jobs demanded.
• C)decrease the equilibrium wage and increase the number of workers employed.
• D)increase the equilibrium wage and increase the number of workers employed.

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Definitions:

Non-Business Organization

An entity that operates for purposes other than making a profit, such as charities, educational institutions, and government agencies.

Restrictive Funds

Funds that are designated for a specific purpose by donor requirements or legal obligations, restricting general use by the recipient.

Collective Goods

Goods or services that provide benefits to all members of a community or society, typically provided by the government and not easily restricted to individual users.

Tangible Capital Assets

Physical assets owned by a firm that are used in its operations and likely to provide future economic benefits, including buildings, machinery, and equipment.