The market demand for labor is
a. More elastic in the long run than in the short run
b. More elastic in the short run than in the long run
c. Unaffected by time differences
d.Never elastic in the relevant range
Economic theory supports the view that decreasing the minimum wage will
a. Increase the employment of teenagers
b. Decrease the employment of teenagers
c. Increase the employment of unionized labor
d. Increase the number of monopsony firms
The market demand for labor is
a. More elastic in the long run than in the short run
b. More elastic in the short run than in the long run
c. Unaffected by time differences
d.Never elastic in the relevant range
Economic theory supports the view that decreasing the minimum wage will
| a. Increase the employment of teenagers | ||
| b. Decrease the employment of teenagers | ||
| c. Increase the employment of unionized labor | ||
| d. Increase the number of monopsony firms |
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Related questions
1.An effective minimum wage law introduced into a perfectly competitive labor market with complete coverage is expected to cause employment to:
A.rise.
B.fall.
C. remain unchanged.
D.change in an unpredictable manner.
2.An increase in an effective minimum wage in a monopsony labor market will cause employment to:
A.increase.
B.decrease.
C. remain unchanged.
D.change in an unpredictable manner, depending upon the magnitude of the increase in the minimum wage.
3.Suppose that a 10% increase in the wage results in a 5% reduction in employment. In this case, labor demand is said to be:
| A. |
elastic |
|
| B. |
inelastic |
|
| C. |
unit elastic |
4. The cross-wage (cross-price) elasticity of demand between labor and capital is positive when
| A. |
the substitution effect is larger than the scale effect. |
|
| B. |
the scale effect is larger than the substitution effect. |
|
| C. |
the wage rises, but not when the wage decreases. |
|
| D. |
None of the above is correct. |
