Refer to the Following Figure When Answering
Figure $L _ { 1 } ^ { S }$

question 1

Multiple Choice

Refer to the following figure when answering
Figure 7.3: Labor Market
-In the labor market depicted in Figure 7.3, investment in new physical capital:

• A) shifts labor supply from \(L _ { 1 } ^ { S }\) to \(L _ { 2 } ^ { S }\)
• B) shifts labor supply from \(L _ { 2 } ^ { S }\) to \(L _ { 1 } ^ { S }\)
• C) shifts labor demand from \(L _ { 1 } ^ { D }\) to \(L _ { 2 } ^ { D }\)
• D) shifts labor demand from \(L _ { 2 } ^ { D }\) to \(L _ { 1 } ^ { D }\)
• E) None of these answers are correct.

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Definitions:

Fallacy

A mistake in the process of reasoning that makes an argument flawed or not logically correct.

General Proposition

A statement or assertion that expresses a concept or principle applying broadly across many instances or situations.

Insufficient Evidence

A situation where there is a lack of adequate information or data to support a claim or conclusion.

Blanket Statement

A generalization that is broad and overlooks exceptions or variability.