If the Wage Rate Rises,labor's Share in the Total Costs

question 8

Multiple Choice

If the wage rate rises,labor's share in the total costs of a production process

• A)will increase.
• B)will decrease.
• C)may increase or decrease depending on the elasticity of demand for the product.
• D)may increase or decrease depending on the ease of substitution of other inputs for labor.

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Definitions:

Four-Year Term

A period often associated with the duration of certain elected offices or specific agreements, notably used to denote the length of a presidential term in many countries.

Federal Reserve Act

The 1913 U.S. legislation that established the Federal Reserve System as the central banking authority, responsible for monetary policy and oversight of banks.

Established

Refers to something that has been in existence for a long time and is accepted by many or most people.

Board of Governors

A governing body at the top of an organization or institution, such as the Federal Reserve, responsible for overseeing its operations and making key decisions.