Question

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.

The demand for labor is a derived demand because:

A. many workers are self-employed.

B. the income workers earn adds to the demand for output.

C. the demand for output comes from the demand for labor.

D. the demand for labor comes from the demand for output.

The elasticity of labor demand does not depend on the:

A. elasticity of demand for the firm's product.

B. relative importance of the factor in the production process.

C. possibility of and cost of substitution in production.

D. elasticity of labor supply.

Answer 1

- 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.

- D. the demand for labor comes from the demand for output..

- D. elasticity of labor supply.