Which of the Following Statements Is True? Other Things Equal

question 20

Multiple Choice

Which of the following statements is true? Other things equal, the demand for labor will be less elastic the

• A)easier it is to substitute capital for labor.
• B)greater the elasticity of resource supply.
• C)greater the elasticity of product demand.
• D)smaller the ratio of labor costs to total costs.

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Definitions:

Carrying Value

The recorded cost of an asset in a company's books after adjusting for depreciation, amortization, or impairment costs.

Retirement

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or health condition, often involving receiving pensions or retirement savings.

Gain or Loss

The financial result from selling an asset for more or less than its purchase price.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is typically not related to its market value.