When Is the Derived Demand for Labor More Inelastic

question 65

Multiple Choice

When is the derived demand for labor more inelastic?

• A) If a given type of labor is essential in the production of the final products
• B) If the market demand for the final products is elastic
• C) If the cost of labor is a significant part of the total product cost
• D) If the supply of materials is elastic

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Definitions:

Trade Deficit

A situation where a country's imports exceed its exports during a specific period, leading to a negative balance of trade.

2008

A year marked by the global financial crisis, often associated with the fall of major banks and economic recession.

Trade Surplus

A situation where a country's exports exceed its imports, indicating a positive balance of trade.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.