A labor supply elasticity of 1.4 means that a wage increase of:
A. 10 percent will increase the quantity of labor supplied by 14 percent.
B. 10 percent will reduce the quantity of labor supplied by 14 percent.
C. 14 percent will reduce the quantity of labor supplied by 10 percent.
D. 14 percent will increase the quantity of labor supplied by 10 percent.
Answer: A
You might also like to view...
William quits his job where he earns an annual salary of $75,000 and opens a management consulting business, charging an hourly rate of $120 . He works out of his home, converting a storeroom into an office. (Zoning restrictions prevent William from renting out the room.) Start-up costs are financed by selling $15,000 worth of bonds he inherited that were earning annual interest payments of $900
. During his first year, William incurs expenses for supplies and utilities that total $3,500 . The total cost of production in the first year equals a. $94,400 b. $79,400 c. $4,400 d. $3,500 e. $19,400
Firms with monopoly power tend to be more efficient than competitive firms
a. True b. False Indicate whether the statement is true or false
In which of the following market structures does free entry and exit play an important role in the long-run equilibrium outcome? (i) perfect competition (ii) monopolistic competition (iii) monopoly
a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)
Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$9000.9$2,500$2,500$1,000Determine the change in the equilibrium level of Consumption (find ?C) following a decrease in investment from 2,500 to 2,000 (?I = -$500).
A. positive $4,500 B. positive $4,000 C. negative $4,000 D. negative $4,500