After 9/11 There Was an Increase in the Number of People

question 19

Multiple Choice

After 9/11 there was an increase in the number of people who became police officers and firemen.What does this imply about the labor market?

• A) The quantity of labor supplied increased,and wages will increase.
• B) The quantity of labor supplied increased,and wages will decrease.
• C) The labor supply increased,and wages will increase.
• D) The labor supply increased,and wages will decrease.
• E) The labor supply increased,and wages will not change.

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Definitions:

Optimal Factor Mix

The most efficient combination of resources and inputs a firm uses to produce goods or services at the lowest cost.

Resource Markets

Markets where productive inputs, such as labor, natural resources, and capital, are bought and sold.

Productivities

The levels of output or efficiency achieved from a set amount of inputs in production or work processes.

Profit-Maximizing

The process where a firm adjusts its production to achieve the highest possible profit given its constraints.