If Higher Wages Give the Incentive for Some Workers to Work

question 40

Multiple Choice

If higher wages give the incentive for some workers to work fewer hours:

• A) the quantity of labor supplied in the market will fall.
• B) the quantity of labor supplied in the market will still rise as new workers enter the market.
• C) the MPL will fall.
• D) the demand for workers will rise.

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Definitions:

Irving Fisher

An American economist, statistician, inventor, and Progressive social campaigner known for his contributions to economic theory.

Credit Risk

The risk of loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Annual Interest Rate

The percentage increase in money charged per year for the use of borrowed funds or for delaying the repayment of a debt.