Other things equal, the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the:
A. demand for labor will be elastic only if labor accounts for less than 50 percent of total costs.
B. demand for labor will be elastic only if labor accounts for 50 percent or more of total costs.
C. larger the labor cost-total cost ratio, the smaller will be the elasticity of labor demand.
D. larger the labor cost-total cost ratio, the greater will be the elasticity of labor demand.
Answer: D
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Value added taxes _____
a. have the same tax base as a consumption tax b. have the same tax base as an estate tax c. have the same tax base as a retail sales tax d. have the same tax bas as an income tax
Hot dog vendors on the beach fail to cooperate with one another on the quantity of hot dogs they should sell to earn monopoly profits. A consequence of their failure is that, relative to the outcome the vendors would like, (i) the quantity of hot dogs supplied is closer to the socially optimal level. (ii) the price of hot dogs is closer to marginal cost. (iii) the hot dog market at the beach is
less competitive. a. (i) and (ii) b. (ii) and (iii) c. (i) and (iii) d. (iii) only
In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month, while “American” miners received $70. Although the wages of both groups tended to rise over time, the gap persisted until at least 1910. Mexican and American miners did the same work and were equally productive. Economists call this pay differential as
A. prejudicial differentials. B. compensating differentials. C. economic discrimination. D. Lorenz discrimination.
Which statement is false?
A. saving plus consumption = disposable income. B. when C = disposable income, saving = zero. C. when consumption is larger than disposable income, saving is negative. D. Each statement is true.