Answer to Question #226816 in Macroeconomics for Priest

Question

5. Which of the following statements is/are correct?
(i) Ceteris paribus, as the real wage rate increases, the quantity of labour demanded
increases.
(ii) An increase in the working age population results in an increase in the supply of labour.
(iii) A change in the real wage rate brings a movement along the labour supply curve.
(iv) The demand for labour is determined by the diminishing returns to labour.
A. Only (i), (ii) and (iv) are correct.
B. Only (ii), (iii) and (iv) are correct.
C. Only (i) and (iii) are correct.
D. Only (i), (iii) and (iv) are correct.

Answer 1

B. Only (ii), (iii) and (iv) are correct

When there are many people to offer labor, there will be an increase in the supply of work done.