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- Subject
- Labour Marketeconomics-mcqs › labour-market
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What is the most probable outcome when there is a decrease in the demand for labor?
Multiple choice question for Labour Market. Select an option, then review the explanation below.
Explanation
When demand for labor falls, the equilibrium wage typically declines. However, the quantity of labor supplied tends to increase as workers are willing to offer more labor at the lower wage, resulting in a lower wage rate but a higher labor quantity.
More Labour Market MCQs
Practice related questions from the same subject.
- 1.How do unions typically contribute to widening the wage gap between union members and non-union workers?
- 2.Under which circumstance can unions enhance efficiency?
- 3.Which of the following reasons explains why companies might choose to pay efficiency wages?
- 4.Which of the following government actions is least likely to decrease the unemployment rate?
- 5.What happens if the wage rate is set above the competitive equilibrium wage for any reason?