The price elasticity of demand for labor equals
A) the percentage change in the price of labor divided by the percentage change in the supply of labor.
B) the change in the quantity demanded of labor divided by the change in the price of labor.
C) the slope of the demand curve for labor.
D) the percentage change in the quantity demanded of labor divided by the percentage change in the price of labor.
Answer: D
You might also like to view...
Refer to Figure 28-9. Fed Chairman Paul Volcker's response to high inflation of the late 1970s is depicted in the figure above as a movement from
A) A to D to C. B) A to B to C. C) C to E to B. D) C to D to A. E) C to B to A.
Buying a diversified mutual stock fund allows you to
A) completely avoid all types of risk. B) avoid only random, unsystematic risk. C) avoid only systematic risk. D) avoid risk only when all the stock prices are perfectly correlated.
Economic profit is:
A. total revenues minus variable costs. B. total revenues minus implicit costs. C. total revenues minus explicit costs. D. total revenues minus explicit costs minus implicit costs.
Which of the following is true in the long run? a. The aggregate demand curve determines the level of potential output
b. The long-run aggregate supply curve is horizontal. c. The actual price level and the expected price level are equal. d. Cyclical unemployment is between 5 percent and 6 percent. e. The price level is determined entirely by the long-run aggregate supply curve.