If the Price of Output in an Industry Rises, Firms

question 43

Multiple Choice

If the price of output in an industry rises, firms in that industry will ______ labor.

• A) increase their demand for
• B) increase their supply of
• C) decrease their demand for
• D) decrease their supply of

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Definitions:

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior and the role of the environment as a determinant of behavior.

Behaviorism

Watson’s view that science must study observable behavior only and investigate relationships between stimuli and responses.

Tabula Rasa

A theory that individuals are born without built-in mental content, and that all knowledge comes from experience or perception.

John Locke

An English philosopher and physician, widely regarded as one of the most influential Enlightenment thinkers and commonly known as the "Father of Liberalism."