A Labor Supply Elasticity of 0

question 77

Multiple Choice

A labor supply elasticity of 0.1 means that a wage increase of 10 percent will:

• A) reduce the quantity of labor supplied by 10 percent.
• B) increase the quantity of labor supplied by 10 percent.
• C) increase the quantity of labor supplied by 1 percent.
• D) reduce the quantity of labor supplied by 1 percent.

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Definitions:

Critical Thinking

Aiming to impartially examine and appraise a matter with the intention of making a determination.

Judgmental

Pertains to the tendency of forming opinions or conclusions about people or situations often without full knowledge or consideration of the facts.

Vigilant

Being keenly watchful to detect danger or maintaining careful attention to responsibilities; alertness to potential problems or threats.

Evolutionary Hypotheses

Theories or propositions based on evolutionary biology that seek to explain the origins and functions of biological traits within the context of natural selection.