Which of the Following Statements Is NOT True for a Case

question 111

Multiple Choice

Which of the following statements is NOT true for a case in which the demand for labor is more elastic than the supply of labor?

• A) Firms can substitute capital for labor if the health insurance on labor gets too costly.
• B) Most workers would continue to work even if their wages were lower because of the cost of health insurance.
• C) Firms cannot escape the cost of health insurance for labor by employing fewer workers.
• D) Firms can move overseas if the tax on labor gets too high.

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Definitions:

Capital Contribution

The act of injecting financial resources or assets into a company or partnership by its owners or partners.

Partnership Agreement

A contractual document among partners that outlines the terms, conditions, and operational procedures of a partnership business.

Personal Loan

An unsecured loan provided by financial institutions, based on the borrower's credit history and ability to pay back, for personal use.

Loan

Borrowed money that is expected to be paid back with interest.