Other Things Equal, the Relationship Between the Relative Importance of a Given

question 222

Multiple Choice

Other things equal, the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the

• A) demand for labor will be elastic only if labor accounts for less than 50 percent of total costs.
• B) demand for labor will be elastic only if labor accounts for 50 percent or more of total costs.
• C) larger the labor cost to total cost ratio, the smaller will be the elasticity of labor demand.
• D) larger the labor cost to total cost ratio, the greater will be the elasticity of labor demand.

---

Definitions:

Labour Force

The total number of people who are employed or actively seeking employment.

Functionalism

A sociological perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Unionized

Refers to workers who are members of a union, which represents their interests regarding wages, working conditions, and benefits.

Post-industrialization

A phase in economic development where a society transitions from a manufacturing-based economy to one focused on services and technology.