A reduction in the supply of labor will cause wages to:
A. decrease and employment to decrease.
B. increase and employment to increase.
C. increase and employment to decrease.
D. decrease and employment to increase.
Answer: C
You might also like to view...
If the cost of capital increased to 25%, does the firm invest in the printer?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0
Roxanne's hourly wage increases from $9 to $13 . Which of the following describes a consequence of the increase in Roxanne's wage?
a. The opportunity cost of Roxanne's leisure time has increased. b. Roxanne may choose to work fewer hours due to the increase in her wage. c. If Roxanne's labor supply curve is upward sloping, she will choose to work fewer hours. d. Both a and b are correct.