Suppose there are four industries. Labor costs are 80 percent of total costs in industry A, 60 percent in B, 45 percent in C, and 10 percent in D
In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of labor by the largest proportion? A) A
B) B
C) C
D) D
A
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Economists call a game that is played more than once:
A. a repeated game. B. collusion. C. a commitment strategy. D. cooperative price play.
Of means tested programs and IRA's, which lower the rate of return on saving?
a. Both means-tested programs and IRA's. b. Means-tested programs, but not IRA's. c. IRA's but not means-tested programs. d. Neither means-tested program, or IRA's.
The long-run effect of an increase in the money supply when starting from full employment is to
A. increase real GDP only. B. increase the price level only. C. increase real GDP as the price level increases too. D. increase both real GDP and the price level.
As the inventory of a firm falls
A. its social capital increases. B. its tangible capital decreases. C. its intangible capital decreases. D. there is no change in its capital.