Which of the Following Would Not Shift the Market Demand

question 103

Multiple Choice

Which of the following would not shift the market demand for labor,ceteris paribus?

• A)The wage paid to labor.
• B)The demand for final products.
• C)The productivity of labor.
• D)The number of employers.

---

Definitions:

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Catch-Up Effect

The theory that poorer economies will tend to grow at faster rates than wealthier ones, allowing them to catch up in terms of income and other economic measures.

Capital

Refers to assets or resources that businesses or individuals use to generate wealth through investment.

Saving Rates

The proportion of disposable income that individuals or an economy as a whole save rather than spend on consumption.