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The Fact That the Demand for Labor Is Downward Sloping

Question 26

Multiple Choice

The fact that the demand for labor is downward sloping means that


A) the marginal factor cost of labor declines as more workers are hired.
B) workers prefer to work more hours when their wage rate declines.
C) workers prefer to work fewer hours when their wage rate declines.
D) firms prefer to hire more workers when the wage rate declines.

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