If the Wage Rate in the Labor Market Is $17

question 244

Multiple Choice

If the wage rate in the labor market is $17 and the productivity of workers decreases, which of the following statements is incorrect?

• A) The labor demand curve shifts to the left.
• B) If wages are flexible, there will be a decrease 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:

Rescission

The revocation, cancellation, or repeal of a contract, returning the parties involved to their positions before the contract was made.

Contract of Adhesion

A standard-form contract prepared by one party to be signed by another party in a position of weaker bargaining power, often not negotiable.

Fraudulent Misrepresentation

The act of intentionally providing false information with the aim of deceiving another party, often to induce them into a contract.

Mutual Mistake

A misunderstanding shared by both parties involved in a contract, leading to a misalignment in agreement terms.