Answer to Question #227114 in Macroeconomics for wsxdrfv

Question

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

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