Suppose labor supply can be described as ES = 0.1w ? 1000 where w is yearly salary. What yearly salary must be paid to encourage 6000 workers to accept jobs?
A. $60,000
B. $30,000
C. $40,000
D. $50,000
E. $70,000
Answer: E
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The U.S. remains the world's economic leader in all respects
a. True b. False Indicate whether the statement is true or false
If the quantity of labor supplied increases by 5 percent when the wage increases by 10 percent, the elasticity of labor supply is:
A. 5. B. 2. C. 1/2. D. 1/5.
According to the law of increasing opportunity costs,
A. Higher opportunity costs induce higher output per unit of input. B. Greater production means factor prices rise. C. Greater production leads to greater inefficiency. D. Greater production of one good requires increasingly larger sacrifices of other goods.
If the price of chicken rises and the price of beef does not rise, consumers will respond by:
A. increasing purchases of beef and chicken. B. reducing purchases of beef and chicken. C. substituting chicken for beef. D. substituting beef for chicken.