Which of the Following Statements Is NOT True for a Case

question 111

Multiple Choice

Which of the following statements is NOT true for a case in which the demand for labor is more elastic than the supply of labor?

• A) Firms can substitute capital for labor if the health insurance on labor gets too costly.
• B) Most workers would continue to work even if their wages were lower because of the cost of health insurance.
• C) Firms cannot escape the cost of health insurance for labor by employing fewer workers.
• D) Firms can move overseas if the tax on labor gets too high.

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