Suppose that studies show that a ten percent increase in the minimum wage decreases the number of minimum wage jobs by one percent. That would be the case if:
A. demand for labor is inelastic.
B. demand for labor is elastic.
C. supply of labor is inelastic.
D. supply of labor is elastic.
Answer: A
You might also like to view...
Suppose the typical consumer only purchases food and clothing, and her utility can be expressed as U = F ? C. Currently, food costs $5 per unit and clothing costs $2 per unit. Her income is $70
If the price of food increases to $6, compare the resulting Laspeyres price index with a true cost of living index.
Consider the above figure. If the aggregate demand fell from AD1 to AD2, our nation would be experiencing
A) an inflationary gap. B) a recessionary gap. C) overemployment. D) rising prices.
In controlling the nation's money supply, the Fed is obligated to seek the advice of
A) the Congress. B) the President of the United States. C) the Treasury. D) a and b E) none of the above
The Doing Business As name identifies a company for:
a. Bank accounts b. Sales c. Patents d. None of these