If there are a number of inexpensive substitutes for labor in the production process, labor:
A. supply will most likely be inelastic.
B. supply will most likely be elastic.
C. demand will most likely be elastic.
D. demand will most likely be inelastic.
Answer: C
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Of the following, the country with the highest average income per day in the world is
A) Japan. B) the United States. C) France. D) Germany. E) China.
The marginal propensity to save is defined as:
A) ?C/?Yd. B) ?S/?Yd. C) ?Yd/?C. D) ?Yd/?S.
In the Baumol model, a change in fixed costs will
A) increase total quantity sold. B) have no effect on total quantity sold. C) decrease total quantity sold. D) have an effect on total quantity sold.
Computer forecasting models have
a. been able to forecast changes in the growth rate of real GDP with considerable accuracy. b. had only limited success predicting turns in key economic variables such as real GDP. c. been able to accurately forecast the future direction of inflation but not real GDP. d. been able to accurately forecast the future direction of real GDP but not inflation.