Assume the Demand for High Tech Good Is Perfectly Inelastic

question 32

Multiple Choice

Assume the demand for high tech good is perfectly inelastic. If workers producing high tech goods become more productive, then these workers employment will ________ and their wages will ________.

• A) fall, rise
• B) fall, fall
• C) rise, rise
• D) rise, fall

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Definitions:

Cocktail Party Effect

The phenomenon where an individual can focus on a single conversation in a noisy environment, filtering out other voices and background noise.

Selective Attention

The cognitive process of focusing on a particular object in the environment for a certain period while ignoring other irrelevant information.

Parental Acceptance

The act of recognizing and supporting a child’s qualities and decisions by a parent or guardian.

Self-Esteem

The subjective evaluation of one's own worth, encompassing beliefs and emotions about oneself.