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:

Independent Variables

Variables in a statistical model that are presumed to influence or cause changes in another variable, without being affected by it.

Increase

Increase refers to the action of becoming larger or greater in size, number, value, or amount.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population, specifically the standard deviation of the sampling distribution of a statistic.

Independent Variables

Variables in an experiment or model that are manipulated or classified by the researcher to observe their effect on the dependent variable(s).