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Refer to the Following Graph of the Demand for and Supply

Question 1

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refer to the following graph of the demand for and supply of armed forces personnel.


refer to the following graph of the demand for and supply of armed forces personnel.     -Which of the following best explains why the government demands fewer persons for the armed forces under the volunteer system than under a draft system (that is,H as compared to G) ? A) The higher wages of a volunteer system induce a shift to greater relative use of capital and a reduction in scale. B) The higher wages of a volunteer system forces the military to employ more labor relative to capital,which reduces the productivity of labor. C) Because a volunteer system attracts only low-wage,low-skill workers,many highly technical jobs must be eliminated. D) The military uses the same number of workers under either system since the true cost is independent of the system used,but it must reduce the amount of capital it uses.
-Which of the following best explains why the government demands fewer persons for the armed forces under the volunteer system than under a draft system (that is,H as compared to G) ?


A) The higher wages of a volunteer system induce a shift to greater relative use of capital and a reduction in scale.
B) The higher wages of a volunteer system forces the military to employ more labor relative to capital,which reduces the productivity of labor.
C) Because a volunteer system attracts only low-wage,low-skill workers,many highly technical jobs must be eliminated.
D) The military uses the same number of workers under either system since the true cost is independent of the system used,but it must reduce the amount of capital it uses.

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