All else equal, a decrease in the productivity of workers will lead to _____ in the quantity of labor hired and _____ in the wage rate.
A) an increase; an increase
B) a decrease; an increase
C) an increase; a decrease
D) a decrease; a decrease

Question

Quizplus · Accepted Answer

A decrease in the productivity of workers makes them less valuable to employers, leading to a decrease in the quantity of labor hired and a decrease in the wage rate, as employers are not willing to pay as much for less productive labor.

All Else Equal, a Decrease in the Productivity of Workers