The demand curve for labor indicates that:
a. as the real wage rate increases, employers will hire more workers.
b. as the nominal wage rate increases, employers will hire more workers.
c. as the nominal wage rate decreases, the real wage rate increases.
d. as the real wage rate increases, employers will hire fewer workers.
e. as the real wage rate decreases the nominal wage rate increases.
Question 2
Individuals acting with self-interest:
a. always choose the same options as other rational individuals.
b. never do voluntary work.
c. always try to attain satisfaction at the expense of others.
d. choose options that give them the greatest amount of satisfaction.
e. have a perfectly elastic demand curve.
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