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Which of the Following Is TRUE Regarding the Labor Market

Question 95

Multiple Choice

Which of the following is TRUE regarding the labor market?
I. The labor supply curve slopes upward because firms maximize profits as they hire more worke
II. If the real wage rate falls, the quantity of labor firms demand increases.
III. The demand for labor curve slopes downward because as the real wage rate falls, workers dem work fewer hours.


A) I, II and III
B) I and II
C) II only
D) I and III

Correct Answer:

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