Suppose there are four industries. Labor costs are 80 percent of total costs in industry A, 60 percent in B, 45 percent in C, and 10 percent in D
In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of labor by the largest proportion? A) A
B) B
C) C
D) D
A
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If the money wage rate and the price level both rise by the same proportion, then in the figure above the potential GDP line ________, and the aggregate supply curve ________
A) shifts rightward; does not shift B) does not shift; shifts rightward C) shifts rightward; shifts rightward D) shifts rightward; shifts leftward E) does not shift; shifts leftward
The cost of the Great Depression between 1929 and 1942 was a loss of:
A) more than the United States ultimately spent on World War II. B) over $15 trillion in today's dollars. C) the output that otherwise would have been produced by the 50 percent of the nation's workers who had lost their jobs. D) both B and C are true.