What Will the Elasticity of Resource Demand Be If Unit

question 325

Multiple Choice

What will the elasticity of resource demand be if unit wages rise by 8 percent and the number of employed workers falls by 5 percent?

• A)4
• B)2.9
• C)1.61
• D)0.63

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Definitions:

Type II Error

An error resulting from failing to reject an incorrect null hypothesis.

Sample Size

The number of observations or elements chosen from a population for the purpose of statistical analysis.

Significance Level

A threshold within which the p-value of a hypothesis test must fall for the result to be deemed statistically significant, typically set at 0.05 or 5%.

Test Power

The likelihood that a statistical test will correctly reject a false null hypothesis, identifying an effect when it is present.