How will an increase in population affect the labor market?
A) It will increase the supply of jobs.
B) It will shift the market supply curve.
C) It will cause a decrease in the quantity of labor demanded.
D) It will increase the opportunity cost of leisure.
Question 2
In the long run, a perfectly competitive market will
A) produce only the quantity of output that yields a long-run profit for the typical firm.
B) generate a long-run equilibrium where the typical firm operates at a loss.
C) supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve.
D) supply whatever amount consumers will buy at a price which earns the market an economic profit.
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