Assuming That Labor Is the Only Variable Input, If Society

question 194

Multiple Choice

Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.

• A) more than; will
• B) less than; will
• C) more than; will not
• D) equal to what; will not

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Definitions:

Price

The amount of money expected, required, or given in exchange for something else, such as goods or services.

Quantity Consumers

Refers to the number of individual buyers or units purchased in the market.

Income Effect

Refers to the change in the quantity of a product demanded by consumers due to a change in their income.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing behaviors or demand for that product or service.