Suppose the Wage Rate in the Labor Market Is $15

question 69

Multiple Choice

Suppose the wage rate in the labor market is $15 and the productivity of workers increases,which of the following statements is INCORRECT?

• A)The labor demand curve shifts to the right.
• B)If wages are flexible,there will be an increase in wages.
• C)If wages are sticky,there will be a shortage in the labor market.
• D)If wages are sticky,there will be a surplus in the labor market.

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Definitions:

Specialized Intellectual Abilities

Unique or distinct cognitive capabilities that are more developed in some individuals than others, allowing for exceptional performance in certain tasks or fields.

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns, independent of acquired knowledge.

Reason

The capacity for consciously making sense of things, applying logic, and establishing and verifying facts.

Correlations

Statistical measures that describe the extent to which two variables change together, indicating a relationship or association between them.