Which of the following is not a true statement about the demand for labor?
A) Wages and the number of workers demanded are endogenous variables.
B) The amount of the good demanded and the rental rate of capital are exogenous variables.
C) Higher wages decrease the quantity of labor demanded by employers.
D) A decrease in the demand for a good decreases the demand for labor.
E) If the rental rate of capital increases,demand for labor will always decrease.

Question

Quizplus · Accepted Answer

The statement "If the rental rate of capital increases, demand for labor will always decrease" is not a true statement about the demand for labor. While an increase in the rental rate of capital may lead to a decrease in the demand for labor in some cases, it is not always the case. The relationship between the demand for labor and the rental rate of capital is not fixed and can vary depending on a variety of factors.

Which of the Following Is Not a True Statement About