The Labour Demand Curve of a Business in a Perfectly

question 49

Multiple Choice

The labour demand curve of a business in a perfectly competitive labour market:

• A)slopes downward because the elasticity of demand is always less than unity
• B)slopes downward because of declining marginal product
• C)is perfectly elastic at the prevailing wage rate
• D)slopes downward because of diminishing marginal utility
• E)slopes upward because of the business's ability to set its resource price

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Definitions:

Schedule C

A tax form used by sole proprietors to report profits or losses from a business.

Sole Proprietor

An individual who owns and operates a business alone, bearing sole responsibility for its debts and liabilities.

Education Expenses

Costs associated with schooling or training, including tuition, books, and supplies, that may be eligible for tax deductions or credits.

Law School

An educational institution specializing in the study of law, preparing students to practice as attorneys.