The Output Effect of a Change in the Wage Rate

question 33

Multiple Choice

The output effect of a change in the wage rate on a firm's demand for labor input will be greater

• A)the larger the share of labor costs in total costs and the greater the price elasticity of demand for output.
• B)the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output.
• C)the larger the share of labor costs in total costs and the higher the quantity demanded.
• D)the smaller the possibilities of substituting capital for labor.

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Definitions:

Ladder Logic

A graphical programming language used in programmable logic controllers (PLCs) that emulates electrical relay logic circuits.

Pilot Lights

Pilot lights are small indicator lights used on control panels or machinery to show the operational status or signal specific conditions like power on or fault conditions.

PLCs

Programmable Logic Controllers, industrial digital computers used for the automation of electromechanical processes, such as control of machinery on factory assembly lines.