Multiple Choice
Which of the following statements is NOT true for a case in which the demand for labor is more elastic than the supply of labor?
A) Firms can substitute capital for labor if the health insurance on labor gets too costly.
B) Most workers would continue to work even if their wages were lower because of the cost of health insurance.
C) Firms cannot escape the cost of health insurance for labor by employing fewer workers.
D) Firms can move overseas if the tax on labor gets too high.
Correct Answer:

Verified
Correct Answer:
Verified
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