If Labor Supply of Unskilled Workers Is Perfectly Inelastic, Then

question 7

Multiple Choice

If labor supply of unskilled workers is perfectly inelastic, then

• A) firms face an increasing marginal cost of hiring unskilled labor.
• B) firms face a horizontal value of marginal product of employment curve.
• C) the labor supply curve of unskilled workers is horizontal at the market-clearing wage.
• D) the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market.
• E) workers will supply more hours of labor to the market when wages increase.

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Definitions:

Interval Scale

A scale of measurement where the intervals between values are evenly distributed, allowing for meaningful comparisons of differences.

Frequency Distribution

A statistical tool that illustrates how often each value in a set of data occurs.

Test Grades

Assessments of a student's performance or understanding in educational settings, usually quantified as scores or letters.

Statistical Terms

Phrases and expressions used to describe, summarize, and analyze quantitative data.