The Elasticity of Labor Supply

question 25

Multiple Choice

The elasticity of labor supply:

• A) should be greater for a state than for a town because people can travel more easily between states than between towns.
• B) should be greater for a town than for a state because people are more likely to consider work in a neighboring town than in another state.
• C) for a town should equal the elasticity of labor supply for a state.
• D) for a town is not related to the elasticity of labor supply for a state.

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Definitions:

Market Oriented

An economic system or approach that prioritizes supply and demand as the primary forces in the market, promoting free competition among businesses.

Pure Capitalist Economy

An economic system characterized by private ownership of the means of production and the absence of government intervention in the market.

Price Mechanism

The process through which market prices adjust to balance supply and demand, allocating resources efficiently.

Government Central Planning

A system where the government makes all decisions on the production and distribution of goods and services.