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:

Purchasing Power

The ability of an individual or group to buy goods or services, often considered in relation to the amount of goods or services that one's money can buy.

Urban Population

The segment of a country's population that resides within towns and cities as defined by governmental standards.

Population Growth

An increase in the number of people that reside in a country or region over a specific period of time.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, water and power lines, and public institutions like schools and hospitals.