The Figure Given Below Represents Equilibrium in the Labor Market

question 60

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-The demand for capital, as an input in production, will decrease if:

• A)labor and capital are substitutes in production and the supply of labor decreases.
• B)the demand for the final good it produces increases.
• C)capital becomes more productive.
• D)the price of capital decreases.
• E)labor and capital are substitutes in production and the wage rate declines.

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Definitions:

Penalties

Sanctions or fines imposed for violating laws or regulations.

Wage Increase

An upward adjustment in employees' salaries or wages, often achieved through negotiation or as a response to inflation.

Authorization Card

A document signed by employees to indicate their support for a union to represent them in collective bargaining with their employer.

Collective Bargaining

Negotiations between an employer and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.