Given an 8 Percent Increase in Wages,firm a Cuts Back

question 42

Multiple Choice

Given an 8 percent increase in wages,firm A cuts back on labor more than firm B.It follows that,ceteris paribus,

• A) there are fewer substitutes for labor in firm B than A.
• B) there are fewer substitutes for labor in firm A than B.
• C) sunk costs are greater for firm A than B.
• D) the demand for the product that firm A produces is less elastic than the product that firm B produces.
• E) a and d

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Definitions:

Familiar Test Items

Test items that are recognizable by individuals, often because they have encountered similar items before or the items are related to known concepts.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimuli have ended.

Short-Term Memory

The capability to hold a minimal amount of information in a state that's ready and active for a short time frame.

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A highly detailed, exceptionally vivid 'snapshot' of a moment or circumstance in which a piece of surprising and consequential (or emotionally arousing) news was heard.