The substitution effect of an increase in the wage rate influences a worker to consuming more leisure.
Answer the following statement true (T) or false (F)
False
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Which of the following is true? a. Voluntary trades give both parties more in value than what they give up
b. Without the ability to trade, people would not tend to specialize as much in those areas where they had a comparative advantage. c. People can gain by specializing in the production of the good in which they have a comparative advantage. d. All of the above are true.
Risk premium is
A. the benefits of buying from a trustworthy institution. B. the additional payment paid by bonds issued by the federal government. C. the tendency of some investors to incur in high risk. D. a payment differential necessary to compensate the investor for having to bear a risk.
Refer to the table shown. A firm would be most likely to hire between:Number of workersMarginal product of workers1527384105116775839010?1
A. 5 and 8 workers. B. 8 and 10 workers. C. 1 and 3 workers. D. 3 and 4 workers.
If, in the aggregate, consumers spend 75 cents of every extra dollar received, then the
A. MPC is 0.75. B. APC is 1.25. C. APC is 0.75. D. MPS is 0.75.