1. If the productivity of labor diminishes only slowly as output increases, then

Question

1. If the productivity of labor diminishes only slowly as output increases, then labor:
A. demand will most likely be inelastic.
B. demand will most likely be elastic.
C. supply will most likely be elastic.
D. supply will most likely be inelastic.

2. The Chicago City Council considered a "living wage" ordinance that would raise the minimum wage in Chicago to about $10 an hour. How did most economists likely view this legislation?
A. It is a proposal that is meant to help everyone.
B. The city will benefit because more people will move to Chicago.
C. All people looking for work will be helped, but consumers will be hurt.
D. Workers who can find work will be helped, but some people will lose their jobs.

Explanation / Answer

1. D

2. C

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