If the Absolute Elasticity of Labor Demand Is 2

question 33

Multiple Choice

If the absolute elasticity of labor demand is 2.0,then an eight percent increase in the wage will

• A) increase employment by 16%.
• B) increase employment by 4%.
• C) decrease employment by 16%.
• D) decrease employment by 4%.

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Definitions:

Opportunities

Circumstances that present a chance for advancement, success, or profit.

Departmentalization

Process of dividing work activities into units within the organization.

Functional

relates to the specific roles and activities designed to achieve objectives within an organization, often grouped by department like marketing or finance.

Production

The process of creating, manufacturing, or producing goods and services.