The supply of labor to one industry will decrease when
A. the price of leisure activities falls.
B. workers receive better employment opportunities in other industries.
C. the income effect dominates the substitution effect.
D. the demand for labor falls in the industry.
Answer: B
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An "opportunity cost" may be described as:
a. the value of what must be gtiven up b. the opporrtunity foregone c. the value of the next best alternative d. the correct measure of cost e. all of these are correct
In the United States the degree of individual income mobility (that is, the degree to which people move from higher to lower or lower to higher income groupings) is
a. rigid in both directions. b. flexible in both directions. c. flexible upward but rigid downward since high income perpetuates itself from generation to generation. d. flexible downward but rigid upward since most low-income people never rise significantly above the poverty level.
How does the leftward shift of the supply curve in graph 2 affect the individual firm shown in graph 1?
a. It causes the firm’s quantity of sales to decrease.
b. It causes the firm’s product price to increase.
c. It causes the firm to dip below its average total cost.
d. It causes the demand for the firm’s products to decrease.
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch.
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; aggression B. cooperation; cooperation C. cooperation; aggression D. aggression; cooperation