Which of the Following Summarizes the Impact of Population Growth

question 109

Multiple Choice

Which of the following summarizes the impact of population growth on the labor market?

• A)This will increase the labor supply, reduce the equilibrium wage and increase the quantity of labor demanded.
• B)There will be an increase in the demand for labor. As a result, the wage rate will rise and the quantity of workers supplied will decrease.
• C)There will be an increase in the demand for jobs. This will result in an increase in the equilibrium wage rate and a movement along the labor supply curve.
• D)There will be an increase in both the demand for labor and the supply of labor. As a result, the equilibrium wage will not change.

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Definitions:

Limited Floor Space

A situation where the available physical area for business operations or inventory storage is constrained.

Machine Hours

A measure of production time, calculated by totaling the amount of time machines are actively running in the production process.

Labour Hours

The total time worked by employees, typically used as a basis for labor cost allocation or productivity measurement.

Total Revenue Curve

A graphical representation that shows how total revenue changes with variations in the quantity of goods or services sold, illustrating the relationship between price and demand.