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

Economics

You might also like to view...

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

Economics

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.

Economics