Which of the Following Is Not a True Statement About

question 31

Multiple Choice

Which of the following is not a true statement about the demand for labor?

• A) Wages and the number of workers demanded are endogenous variables.
• B) The amount of the good demanded and the rental rate of capital are exogenous variables.
• C) Higher wages decrease the quantity of labor demanded by employers.
• D) A decrease in the demand for a good decreases the demand for labor.
• E) If the rental rate of capital increases,demand for labor will always decrease.

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Definitions:

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate changes in unemployment, GDP, inflation, and economic policies.

Large Firms

Companies or enterprises that operate on a large scale, often having considerable market power and resources.

Economy

The structure of economic activity in a community, a region, a country, a group of countries, or the world

Normative Economic Statement

A statement that reflects an opinion, which cannot be proved or disproved by reference to the facts.