The "Elasticity Argument" Criticizing Traditional Economic Analyses of the Minimum

question 49

Multiple Choice

The "elasticity argument" criticizing traditional economic analyses of the minimum wage implies that

• A)any increase in employment greatly reduces the marginal productivity of employed workers.
• B)any increase in employment greatly increases the marginal productivity of employed workers.
• C)the short-run marginal productivity of workers is independent of the number of workers employed.
• D)patriotic employers should want to pay their American employees more than their foreign employees.

---

Definitions:

CISG

Stands for the United Nations Convention on Contracts for the International Sale of Goods, a treaty that offers a uniform international sales law.

Perfect Tender Rule

A standard that requires the seller to deliver goods in conformity with the terms of the contract, without any defects or deviations.

Cure

The act of correcting a breach of contract or rectifying a defective performance within a specified period.

Anticipatory Repudiation

A contractual party's indication, before their due performance time, that they will not fulfill their contractual obligations.