The Output Effect of a Change in the Wage Rate

question 33

Multiple Choice

The output effect of a change in the wage rate on a firm's demand for labor input will be greater

• A)the larger the share of labor costs in total costs and the greater the price elasticity of demand for output.
• B)the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output.
• C)the larger the share of labor costs in total costs and the higher the quantity demanded.
• D)the smaller the possibilities of substituting capital for labor.

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Definitions:

Expressions Given Off

Observable expressions that can be either intended or unintended and are usually nonverbal.

Thomas Theorem

Classic formulation of the way individuals determine reality, whereby “if people define situations as real, they are real in their consequences”.

Erving Goffman

A sociologist known for his analysis of human interactions and the development of the concept of dramaturgical analysis.

George Herbert Mead

An American sociologist and psychologist, known for his significant contributions to the development of symbolic interactionism and social psychology.