When the supply of labor increases, according to the
Specificfactors model, which of the following is NOT
Likely to happen?
A)The number of workers employed will increase.
B)The wages for workers will decline.
C)The marginal product of labor shifts to the right.
D)The overall wage in the economy increases in the short run.

Question

When the supply of labor increases, according to the
Specific­factors model, which of the following is NOT
Likely to happen?
A)The number of workers employed will increase.
B)The wages for workers will decline.
C)The marginal product of labor shifts to the right.
D)The overall wage in the economy increases in the short run.

Quizplus · Accepted Answer

According to the Specific-factors model, an increase in the supply of labor will lead to an increase in employment, a decrease in wages, and a rightward shift in the marginal product of labor. However, the overall wage in the economy may not necessarily increase in the short run.

When the Supply of Labor Increases, According to the