Does an upward-sloping labor-supply curve mean that people respond to a decrease in the wage by enjoying more leisure or less leisure?
An upward-sloping labor-supply curve means that people respond to a decrease in the wage by enjoying more leisure.
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Opportunity cost always arises when a trade-off decision is made.
Answer the following statement true (T) or false (F)
Suppose an individual has $100 to invest. Two assets are available. One asset will yield a return of 10%, while the other risky asset will yield 0% with probability .5 and 21% with probability .5
Suppose the investor's utility function is given by U(x) = ln(x) where x is the wealth after investing (assume she is investing for just one period). How much will she invest in the risky asset?
An increase in total utility would be depicted using indifference curve analysis as: a. a movement down along an indifference curve to the southeast
b. a movement up along an indifference curve to the northwest. c. a movement from one indifference curve to another located to the northeast. d. a movement from one indifference curve to another located to the southwest.
The airline dominating Charlotte, North Carolina, once contended that it could not overcharge for fear of potential competition, if not at Charlotte, then at Raleigh, a two-hour drive away. Do you find this argument compelling, given the theory of contestable markets?
What will be an ideal response?