Assume leisure is a normal good. The substitution effect of a wage increase implies a ________ demand for leisure and a ________ labor supply.
A. lower; higher
B. higher; lower
C. lower; lower
D. higher; higher
Answer: A
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Term limits on political offices have all of the following properties except:
A. prevent officials from holding office for longer than a certain amount of time. B. discourage corruption by ensuring that one person isn't allowed to hold onto power for too long. C. can encourage corruption in reality by placing an official in power with no incentive to answer to his constituency. D. encourage people to run for multiple different political offices.
Which of the following is a fixed cost?
a. electricity b. worker bonuses c. mortgage on the building d. steel to produce refrigerators
Adverse selection can only occur when there is asymmetric information
a. True b. False Indicate whether the statement is true or false
An increase in cyclical unemployment will result in
A) an increase in the natural rate of unemployment. B) an increase in the unemployment rate. C) an increase in structural unemployment. D) a decrease in frictional unemployment.