If an Increase in the Hourly Wage Rate from $5

question 62

Multiple Choice

If an increase in the hourly wage rate from $5 to $6 causes a worker to work 5 hours rather than 4, the worker's elasticity of labor supply is equal to:

• A) 0.8.
• B) 1.25.
• C) 0.833.
• D) 2.

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Definitions:

William Jennings Bryan

William Jennings Bryan was a leading American politician and orator of the late 19th and early 20th centuries, known for his advocacy for populism, prohibition, and his three unsuccessful presidential campaigns.

Forward-Thinking

Characterized by the ability to anticipate and plan for future needs, trends, or problems.

Telegraph

An early method of long-distance communication that transmitted electric signals over wires to convey messages across distances instantly.