If the Productivity of Labor Diminishes Only Slowly as Output

question 125

Multiple Choice

If the productivity of labor diminishes only slowly as output increases, labor:

• A) demand will most likely be inelastic.
• B) demand will most likely be elastic.
• C) supply will most likely be elastic.
• D) supply will most likely be inelastic.

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Definitions:

Tariffs

Taxes imposed on imported goods and services, which are typically used by governments to protect domestic industries, raise revenue, or exert political leverage.

Trade Restrictions

Regulations or policies that countries adopt to limit the import and export of goods and services, often to protect domestic industries.

Secondary Effects

Unintended consequences of economic actions, which may manifest in areas not directly targeted by the initial action.

Unintended Consequences

Outcomes that occur as a result of actions or policies that were not anticipated or intended by the actors involved.