In Comparing Two Otherwise Identical Industries X and Y,an Economist

question 1

Multiple Choice

In comparing two otherwise identical industries X and Y,an economist finds that labor demand is more elastic in industry X.Which of the following would support this finding?

• A)Capital and labor are less easily substituted for one another in X than in Y
• B)Labor costs as a percentage of total costs are relatively lower in X than in Y
• C)Product demand elasticity is higher in X than in Y
• D)Substitute resources have a less elastic supply in X than in Y

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Definitions:

Foreign Policy

A government's strategy in dealing with other nations, regarding diplomacy, military action, trade agreements, and other international relations.

Obama

Refers to Barack Obama, the 44th President of the United States, who served from 2009 to 2017 and was the first African American to hold the office.

Bush

Referring usually to either George H. W. Bush, the 41st President of the United States, or George W. Bush, the 43rd President.

Isolationism

A policy or doctrine in which a nation prefers to keep out of the political affairs of other countries, focusing instead on its own interests and security.