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:

Straight Line Depreciation

A line that shows a constant decline in the value of something, such as a car that loses the same value each year.

Odometer

A gauge on the dashboard of a car that indicates the distance the car has traveled since it left the factory.

Odometer

A device used in vehicles to measure the distance traveled.

Miles Per Gallon

A measure of fuel efficiency in vehicles, indicating how many miles can be traveled on a single gallon of fuel.