When Output Increases by 1%, the Number of Jobs Does

question 284

Multiple Choice

When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?

• A) A firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
• B) A firm is likely to meet some of the increase in output by decreasing the number of hours worked per job.
• C) Firms are likely to meet some of the increase in output by reducing labor productivity.
• D) Firms are likely to meet part of the increase in output by eliminating any excess capital they may have.

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Definitions:

Plasma Membrane

The bilayer of lipids surrounding the cell's cytoplasm, which controls the passage of elements into and out of the cell.

Chronic Hormone Secretion

The continuous or prolonged release of hormones into the bloodstream, affecting the body's functions over an extended period.

Down-Regulation

A biological process where the number of receptors or the sensitivity of a cell to a molecule decreases in response to an external factor.

Insensitivity

A lack of sensitivity or responsiveness to stimuli or inputs, whether emotional or physical.