Question

which of the following scenarios would most likely result in a decline in wages
a small town has many enginerring firms and several colleges with graduating engineers
a small town has two resturants and a handful of cooks and waiters
a small town has an oil boom and overnight thousands of new positions emerge
a small town once had five factories employing thousans of workers but then four closed in one year

Answer 1

The scenario that would most likely result in a decline in wages is when a small town once had five factories employing thousands of workers, but then four closed in one year. This sudden closure would lead to a significant decrease in jobs and will likely result in increased competition for the remaining positions, leading to a decline in wages.