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:

Product vs. Service

A comparison between tangible items (products) and intangible activities (services) offered in the market.

Chicken

A type of poultry and common domesticated fowl, widely consumed as meat and eggs across the globe.

Chef

A professional cook, often the head of a kitchen, who is responsible for preparing meals in restaurants or other establishments.

Intangibility

A characteristic of services that makes them unable to be seen, touched, or quantified before they are bought and used.