Which of the Following Will Cause a Shift in the Demand

question 240

Multiple Choice

Which of the following will cause a shift in the demand curve of labor?

• A) an increase or decrease in the productivity of labor
• B) an increase or decrease in the demand for the product labor produces
• C) a decline in the price of a complementary input
• D) all of the above

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Definitions:

Resource Allocation

The process of distributing available resources among different uses identified in an economy.

Taxing Polluters

A policy approach that imposes taxes on companies or individuals who produce pollution as a means to internalize environmental externalities and encourage pollution reduction.

Positive Externalities

Benefits that affect a third party not directly involved in a transaction or activity, resulting in a positive effect on society.

Principal-Agent Problem

A dilemma in economics where one party (the agent), acting on behalf of another party (the principal), may have different goals or incentives, potentially leading to inefficiencies.