A Change in a Price of a Substitute Input for Labor

question 33

Multiple Choice

A change in a price of a substitute input for labor will cause

• A) a change in the demand for labor in the opposite direction of the price change.
• B) no change in the demand for labor.
• C) a change in the supply of labor in the opposite direction of the price change.
• D) a change in the demand for labor in the same direction of the price change.

---

Definitions:

Offset Agreement

An agreement wherein a supplier agrees to buy products from the party to whom it is selling in order to win the buyer as a customer and “offset” the buyer’s production costs.

Import Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries or generate revenue.

Communication Challenges

The obstacles or issues faced during the process of conveying, receiving, and understanding messages among individuals or entities.

Sensitive Knowledge

Information that is critical or private in nature, often requiring careful handling and protection due to its significance or potential impact.