An Increase in the Demand for Autoworkers Would NOT Come

question 71

Multiple Choice

An increase in the demand for autoworkers would NOT come about because of a(n) :

• A)increase in the price of cars.
• B)decrease in the market wage rate.
• C)increase in the productivity of autoworkers.
• D)increase in the supply of other factors that autoworkers use in production.

---

Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Market Economy

An economic system where supply and demand from consumers and businesses drive the production and allocation of resources and services, with minimal government intervention.

Market Failure

A circumstance where goods and services are distributed ineffectively by a market operating without restrictions, commonly leading to a decline in social welfare.

Allocate Resources

The process of distributing available resources among various competing needs and wants in order to achieve desired outcomes efficiently and effectively.