Which of the following statements is true? Other things equal, the demand for labor will be less elastic the:
A. easier it is to substitute capital for labor.
B. greater the elasticity of resource supply.
C. greater the elasticity of product demand.
D. smaller the ratio of labor costs to total costs.
Answer: D
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You are trying to decide if you should take a day off from work to go to a casino
In making your decision, you compare what you would sacrifice to go to the casino (lost wages for the day, potential losses at the casino, the amount of work you will have to make up, etc.) with the enjoyment you would receive from the day off (relaxation, potential winnings, etc.). The analysis you have just conducted is called A) cost-benefit analysis. B) comparative advantage analysis. C) stress analysis. D) sacrificial-wage analysis.
Refer to above figure. If trade were to open up between P and R, where would the world terms of trade locate in the figure above (somewhere on the PC/PF axis)? Would relative wages (w/r) in the two countries become equal? Is this consistent with the
Heckscher-Ohlin model? Explain.
In 2012, approximately what income level was the cut-off point for defining a family as "rich"?
a. $72,000 b. $104,000 c. $143,000 d. $195,000
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What will be an ideal response?