Other Things Being the Same, If the Demand for Labor

question 126

Multiple Choice

Other things being the same, if the demand for labor is inelastic,

• A) decreases in wage rates will result in greater payrolls.
• B) increases in wage rates will result in greater payrolls.
• C) increases in wage rates will result in smaller payrolls.
• D) decreases in wage rates will increase both employment and worker incomes.

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Definitions:

Employee Responsibility

Refers to the duties and obligations that an employee is expected to fulfill as part of their role within an organization.

Quebec Pension Plans

A mandatory public pension plan for workers in Quebec, aimed at providing retirees with a basic level of income.

Employee Contributions

The portion of earnings that workers voluntarily allocate towards benefits like retirement plans or health insurance.