Looking for help with an assignment? Connect with an assignment Expert Now!

Elasticity of Labor Demand

Elasticity of Labor Demand. ECON 101 Midterm Exam Week 4

Midterm

Part 1 of 1 –

100.0 Points

Question 1 of 19

5.0 Points

Economics is the study of:

Answer Key: C

Question 2 of 19

5.0 Points

Which of the following is not a central focus of the “economic perspective”?

Answer Key: B

Question 3 of 19

5.0 Points

The satisfaction or pleasure one gets from consuming a good or service is:

Answer Key: B

Question 4 of 19

5.0 Points

The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of:

Answer Key: B

Question 5 of 19

5.0 Points

Which statement best describes a capitalist economy?

Answer Key: C

Question 6 of 19

5.0 Points

Capitalism is an economic system that:

Answer Key: D

Question 7 of 19

5.0 Points

In a market system, well-defined property rights are important because they:

Answer Key: D

Question 8 of 19

5.0 Points

If two goods are complements:

Answer Key: C

Question 9 of 19

5.0 Points

When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is:

Answer Key: A

Question 10 of 19

5.0 Points

Demand can be said to be inelastic when:

Answer Key: C

Question 11 of 19

5.0 Points

Economic growth is shown by a shift of the production possibilities curve outward and to the right.

Answer Key: True

Question 12 of 19

5.0 Points

The four factors of production are land, labor, capital, and government services.

Answer Key: False

Question 13 of 19

5.0 Points

If demand increases and supply simultaneously decreases, equilibrium price will rise.

Answer Key: True

Question 14 of 19

5.0 Points

Property rights have a positive effect in a market economy because they encourage owners to maintain their property.

Answer Key: True

Question 15 of 19

5.0 Points

In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue.

Answer Key: True

Question 16 of 19

5.0 Points

Price elasticity of supply decreases the longer the time period.

Answer Key: False

Question 17 of 19

5.0 Points

Toothpaste and toothbrushes are substitute goods.

Answer Key: False

Question 18 of 19

5.0 Points

A government-set price ceiling will lower equilibrium price and quantity in a market.

Question 19 of 19

10.0 Points

Under what elasticity conditions would the following be true:

“Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage”?

ANSWER:
This statement is an example of “Elasticity of Labor Demand”. Companies gain profit by paying more workers less than minimum wage. If the minimum wage increases, it now becomes too expensive to keep additional hands on the payroll, therefore resulting in a loss of employment. On the other hand, if there is only a slight increase in the rise of minimum wage (3% – 5%), the loss of employment rate should be much less (1% – 2%) making the labor demand inelastic. I think it all depends on the total amount of revenue the company is taking in.

Elasticity of Labor Demand

Get a Quick Quote

Approximately 250 words
Total price (USD) $: 10.99

Pressed for time on your upcoming paper? We can help!

Bored with homework

Reviews from Clients who Ordered from Our Website

Why Us?

Quality

We use grammar & plagiarism softwares and a Quality Assurance Editing Team to ensure you get a ready to submit paper

Fast

We understand how tight deadlines can get and are always eager to work and beat tight deadlines

Revision

To deliver the best results we offer endless revisions to ensure you get just what they asked for

Personalised

You get to chat and interact with the writer to ensure the paper meets all standard requirements

How it Works

Place an Order

Provide your contact information, select an order type, and describe your requirements. This isn’t going to take long!

Image showing step 1 of making an order
Image showing how to make payment for your order

Select an Appropriate Writer

We’ll match your specifications with our available authors after we have all of the relevant information concerning your order.

Image showing how to download your completed results

Enjoy the End Product

One of our specialists will fulfill your purchase according to your specifications so that you are happy with the end result.