An Increase in the Demand for Houses

question 402

Multiple Choice

An increase in the demand for houses

• A)increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
• B)increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
• C)decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
• D)decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, usually expressed per hour or per year.

Wage Disparity

The difference in wages earned by different groups of people, often highlighted by gaps across genders, ethnicities, or education levels.

Ability And Talent

The skills and natural aptitudes individuals possess, which can affect their performance in various activities or professions.

Median Earnings

The middle value of earnings in a given distribution, where half of the workers earn less and half earn more.