If a 10 Percent Wage Increase in a Particular Labor

question 75

Multiple Choice

If a 10 percent wage increase in a particular labor market results in a 5 percent decline in employment in that market, labor demand is

• A) unit-elastic.
• B) elastic.
• C) inelastic.
• D) perfectly elastic.

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Definitions:

Nature

The inherent qualities or characteristics of a person or thing; also refers to the physical world and its biological processes.

Interests

The stakes or investments that individuals or groups have in a particular issue, outcome, or situation.

Personal Intervention

Direct and personal involvement in attempting to alter a situation or outcome.

Morphogenesis

The biological process that causes an organism to develop its shape and structure.