The demand for labor curve bends backward whenever the income and substitution effects work in opposite directions
a. True
b. False
B
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The marginal product of labor measures: a. the total amount of output produced by all workers combined
b. the quantity of an intermediate product that is combined with labor to produce output. c. the amount of output an additional worker contributes to a firm's total output. d. the average productivity of workers hired by a firm.
Answer the following statements true (T) or false (F)
1. The supply of money is inversely related to the level of total income and output. 2. The transactions approach to the equation of exchange can be expressed as MV = PQ. 3. The velocity of money is equal to PQ/M. 4. If M equals $40, V equals 16, and Q equals 16, then P equals $40. 5. If M triples, V remains the same, and Q doubles, then P rises.
A firm's reinvested profit is referred to as:
a. corporate bonds. b. dividends. c. an annuity d. retained earnings.
A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consumer buys 6 bars per week. The income elasticity of demand for chocolate by this consumer is about:
A. 0 B. 0.5 C. 1 D. 2