If Industry A can substitute capital for labor easily and Industry B cannot,then (other things equal)
A) Industry A's own-wage elasticity of demand will be higher than Industry B's.
B) Industry B's own-wage elasticity of demand will be higher than Industry A's.
C) the industries' own-wage elasticities of demand will be equal.
D) we cannot predict which firm's own-wage elasticity of demand will be higher.
Correct Answer:
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Q9: Cross wage elasticities of demand are
A) always
Q10: If labor is a small percentage of
Q11: Empirical estimates of the short-run employment effects
Q12: Along a straight-line demand curve for labor
A)
Q13: Own-wage elasticities of demand are
A) always positive.
B)
Q15: The own-wage elasticity of demand measures
A) change
Q16: If the quantity of steel workers demanded
Q17: If the quantity of auto workers demanded
Q18: According to empirical estimates,when wages are increased
Q19: Empirical estimates of cross-wage elasticities show that
A)
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