Explain why a single labor supply curve can have both a positive and negative elasticity
What will be an ideal response?
The labor supply curve will have a positive elasticity when an increase in wages induces more people to enter the workforce. However, as wages rise workers become better off and may trade some labor for more leisure. At this higher wage level the elasticity of labor supply becomes negative as higher wages cause a reduction in the labor supply.
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The years after 1960 witnessed some social and economic changes of extraordinary magnitude, including all of the following except
(a) The core of U.S. growth shifted away from its historic base in heavy industry. (b) A huge influx of women into the labor force occurred. (c) Legislation provided for greater safety on the job and cleaner air and water. (d) The Cold War ended in the early 1970s, following the end of the Vietnam War, and defense spending declined significantly from the Cold War years of the 1950s.
The benefits principle states that the users of a service should pay for that service
a. True b. False Indicate whether the statement is true or false