Most research suggests that the elasticity of the labor supply with respect to taxes is:
A. very low for most people.
B. very high for most people.
C. highly variable across people.
D. unpredictable in most settings.
A. very low for most people.
Economics
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The above figure shows a labor market with a minimum wage of $8 an hour. How many people are employed when the minimum wage is in place?
A) 40,000 B) 60,000 C) 80,000 D) fewer than 40,000 E) more than 80,000
Economics
A construction company builds roads with machinery (capital, K) and labor (L)
If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high ________ use and low ________ use. A) labor, capital B) capital, labor C) concrete, gravel D) none of the above
Economics