A Decrease in the Marginal Factor Cost of Labor Will

question 12

Multiple Choice

A decrease in the marginal factor cost of labor will

• A) lead to an decrease in the quantity demanded of labor.
• B) induce a firm to hire fewer workers.
• C) induce a firm to hire more workers.
• D) cause the value of the marginal product of labor to decrease.

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Definitions:

Labor Force

The total number of people employed or seeking employment in a country or region.

Global Economy

The interconnected worldwide economic activities that determine the production, distribution, and consumption of goods and services across different countries.

Assembly

The act of gathering or coming together of a group of people, typically for a specific purpose or action.

Increased Employment

A situation or condition where the number of people who are employed grows, indicating economic growth or recovery.