Which of the following is likely to cause a fall in the wage rate and an increase in the number of workers hired in a local cotton mill?

Question

Quizplus · Accepted Answer

A reduction in wages paid in a nearby jute mill would decrease the opportunity cost of working in the cotton mill, as workers may switch from the jute mill to the cotton mill. This would increase the labor supply and lead to a fall in wage rates and a rise in the number of workers hired.

B, C, and D are unlikely to cause a fall in the wage rate and an increase in the number of workers hired. The introduction of labor-saving technology in the mill would reduce the demand for labor and may lead to job loss or reduced wages. The introduction of labor-complementary technology would increase the productivity of workers and could potentially lead to an increase in wages, while a decrease in the population of the region would reduce the labor supply and could lead to an increase in wages.

Which of the Following Is Likely to Cause a Fall