According to the Output Effect of a Factor Price Change

question 56

Multiple Choice

According to the output effect of a factor price change, if supply of labor increases, then once the firm fully adjusts to the labor supply change it

• A) increases output and thus demand for all inputs increases.
• B) decreases output and thus demand for all inputs decreases.
• C) increases demand for labor alone and there is no change in its output level.
• D) increases output and decreases demand for labor.

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Definitions:

Centralization

The accumulation of decision-making power at the higher echelons of an organization or system.

Initiating Structure

A leadership behavior characterized by clearly defining and organizing work roles and tasks, and setting up clear lines of communication and authority.

Task Satisfying

The state of finding fulfillment or satisfaction in completing tasks or activities, often related to work or personal projects.

Employee Depend

The reliance of employees on their workplace for various needs or support.