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If the Price Elasticity of Supply of Labor Is Equal

question 33

Multiple Choice

If the price elasticity of supply of labor is equal to 0.5 and the price elasticity of demand for labor is -2, then which of the following is likely to result from a tax on labor earnings?


Definitions:

Net Income

The final income of a business once expenses and taxes are removed from the total revenue.

Invested Capital

Total capital invested in a company by its shareholders and debt holders, used for calculating returns generated by a company.

Assets

Assets represent resources owned or controlled by a business or individual that are expected to produce economic value or benefit in the future.

Total Assets Turnover Ratio

A measure of a firm's efficiency in using its assets to generate sales, calculated by dividing sales by total assets.

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