Suppose the Substitution Elasticity Between Capital and Labor Is ?2-

question 28

Multiple Choice

Suppose the substitution elasticity between capital and labor is ?2- 2.6%.What does this imply about the demand for labor?

• A) The long run demand for labor is relatively inelastic.
• B) The long run demand for labor is relatively elastic.
• C) The short run demand for labor is relatively inelastic.
• D) The long run supply of labor is relatively inelastic.
• E) The long run supply of labor is relatively elastic.

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Definitions:

Mammy

A stereotypical image of a black woman, depicted as devoted and submissive, serving her white employers.

Stereotype Threat

The risk of confirming negative stereotypes about one’s social group, which can impair performance and contribute to disparities.

Threatened Domain

An area or aspect of an individual's life or identity that feels at risk or under attack, causing stress or defensive reactions.

Positive Stereotypes

Generalizations about a group that are seen in a positive light, but can still have restrictive effects by limiting individual expression.