Suppose the Wage Rate in the Labor Market Is $15

question 210

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:

Family Bonds

Emotional connections between family members that provide support, love, and a sense of belonging.

Parental Monitoring

The actions taken by parents to be aware of their children's activities, peers, and whereabouts to guide their behavior.

Psychological Control

A form of manipulation that aims to influence or control another's behavior through psychological means rather than through direct coercion.