Which of the Following Statements Is True? Other Things Equal

question 127

Multiple Choice

Which of the following statements is true? Other things equal, the demand for labor will be less elastic the

• A) easier it is to substitute capital for labor.
• B) greater the elasticity of resource supply.
• C) greater the elasticity of product demand.
• D) smaller the ratio of labor costs to total costs.

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Definitions:

Agents

Individuals or entities authorized to act on behalf of another (the principal) in dealings with third parties.

Respondeat Superior

A legal doctrine holding employers or principals liable for the wrongful acts of their employees or agents, committed within the scope of their employment or authority.

Tort Liability

Legal responsibility arising from a civil wrong that causes harm or loss to another party, not based on contractual obligations.

Unauthorized Acts

Actions taken by an individual or entity that have not been approved or sanctioned by the necessary authority or party.