When the Supply of Labor Increases, According to the Specific-Factors

question 83

Multiple Choice

When the supply of labor increases, according to the specific-factors model, which of the following is likely to happen?

• A) The number of workers employed will decrease.
• B) The wages for workers will decline.
• C) The marginal product of labor increases in all industries.
• D) The overall wage in the economy increases in the short run.

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Definitions:

Employer-paid Health Insurance

A benefit where the employer covers part or all of the health insurance premium for their employees.

Employer-paid Retirement Program

A retirement savings plan funded by the employer, contributing to an employee’s retirement benefits.

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Expenses associated with repairing or replacing products under warranty.