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The Elasticity of Labor Supply

Question 33

Multiple Choice

The elasticity of labor supply:


A) should be greater for a state than for a town because people can travel more easily between states than between towns.
B) should be greater for a town than for a state because people are more likely to consider work in a neighboring town than in another state.
C) for a town should equal the elasticity of labor supply for a state.
D) for a town is not related to the elasticity of labor supply for a state.

Correct Answer:

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