The wage elasticity of labor demand is always negative.
Answer the following statement true (T) or false (F)
True
Rationale: Firm labor demand always slopes down -- implying a negative wage elasticity of labor demand.
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Which of the following statements is true?
A) Optimization requires individuals to foresee the future perfectly. B) An optimizing individual need not consider the risks involved in various choices. C) An optimizing individual is also likely to exhibit rationality. D) The less information that is available, the easier it is to make optimal decisions.
Refer to Table 2-16. What is Finland's opportunity cost of producing one cell phone?
A) 0.25 board feet of lumber B) 4 board feet of lumber C) 12 board feet of lumber D) 16 board feet of lumber
Refer to Figure 7-6. Answer the following questions:
1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services? 2. With insurance acting as a third-party payer, what price will consumers pay for medical service? 3. With insurance acting as a third-party payer, what price will doctors receive for medical service? 4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services? 5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?
Which of the following policies may decrease the level of capital intensity in industry?
a. an increase in the cost of capital b. a decrease in the minimum wage c. an increase in the elasticity of substitution d. All of the above