If the Supply of Labor Decreases, Which of the Following

question 84

Multiple Choice

If the supply of labor decreases, which of the following events will occur?

• A) The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate.
• B) The wage rate will fall and firms will decrease employment to the point where MRP equals the new wage rate.
• C) The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate.
• D) The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate.

---

Definitions:

Mental Attitudes

The psychological state of mind or disposition towards certain ideas, objects, or people, which influences behavior and perception.

Self-defeating Behavior

Activities or attitudes that work against one’s best interest.

Life Script

A psychological concept that points to a series of subconscious instructions we follow, shaped by our experiences and the expectations of society.

Self-defeating Behavior

Actions or behaviors that undermine one's own goals or desires, often leading to negative outcomes or failure.