If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be
A) zero.
B) numerically equal to 1.
C) finite, but greater than -1.
D) positive, but less than 1.
Answer: B
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Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. Under conditions of free trade, how much consumer surplus will there be?
A. $26,450 B. $26,650 C. $52,900 D. $53,300
An economy that self-corrects a recessionary gap will experience falling nominal wages, rising real wages, and falling output
a. True b. False Indicate whether the statement is true or false
Which of the following events would produce an upward shift in the consumption function, other things being equal?
a. An increase in consumer wealth. b. A decrease in consumer wealth. c. A decrease in autonomous consumption. d. Both b and c.
Scientific research is subsidized by the government because:
A. it yields benefits to consumers and producers who did not participate in the research. B. researchers are underpaid by private firms, so the government must make up the difference. C. much scientific research takes place at state-funded universities. D. scientific research has no market value and so would not be undertaken without government intervention.