Related to the Economics in Practice on p. 105: Researchers found that a ten percent reduction in the tax rate induced a twenty percent increase in migration in Europe. This indicates that labor migration in Europe is
A. elastic.
B. unit elastic.
C. inelastic.
D. perfectly inelastic
Answer: A
You might also like to view...
In the table above, what is the equilibrium wage rate in an unregulated market?
A) $8.00 per hour B) $9.00 per hour C) $10.00 per hour D) $11.00 per hour
Under a fixed exchange rate regime, a central bank that does not want to acquire international reserves to keep its currency from ________ will decide to ________ its currency
A) depreciating; revalue B) depreciating; devalue C) appreciating; revalue D) appreciating; devalue
When the value of operating authority fell to zero after trucking deregulation, that was a sign that deregulation would not work well
Indicate whether the statement is true or false
Safety Training One task of Mega Manufacturing's Human Resource Department is to perform periodic safety training at Mega's various plants. HR is run as a profit center with each plant manager paying for this safety training via a transfer price
Recently, some of the plant managers have been hiring outside firms for their safety training. HR has complained to corporate that they will have to lay off staff if this continues but the plant managers reply that they are maintaining their acceptable safety record at a lower cost. What does this imply about the transfer price?