When Is the Supply of Labor Elastic

question 66

Multiple Choice

When is the supply of labor elastic?

• A) When an employer is a relatively small factor in a labor market
• B) When there are a lot of employment opportunities in the market
• C) When several employers hire the same type of labor simultaneously
• D) When the rate of unemployment is low in the market

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent or salaries.

Total Expense

The sum of all costs and expenses associated with the operations of a business.

Level Of Activity

A measure of the amount of output or work performed, often used in accounting to allocate fixed costs or in operational planning.