If Donald receives a pay raise and the income effect outweighs the price effect on his labor supply decisions, he will work:
A. less hours initially but eventually work more.
B. more hours.
C. the same amount.
D. less hours.
Answer: D
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Which of the following situations best describes an individual who is cyclically unemployed?
A) Catherine is a ski instructor who is not working because it is summer. B) Matthew was an artillery man, but he has been unable to find work since he left the army. C) Nicholas was laid-off when orders for General Motors cars fell during a recession. D) Susan quit her job as a preschool teacher to try to find a better paying job.
When bank tellers converse with each other, keeping customers waiting in line, they are
A) unemployed. B) out of the labor force. C) working in the best interest of the agent. D) working in the best interest of the principals.
Good X and good Y are substitutes. If the price of good Y increases, then the
a. demand for good X will decrease. b. quantity demanded of good X will decrease. c. demand for good X will increase. d. quantity demanded of good X will increase.
The figure above shows the demand and cost curves facing a price-setting firm. In profit-maximizing (or loss-minimizing) equilibrium, the price-setting firm earns ________ in total revenue, which is ________ the maximum possible total revenue of ________.
A. $8,000; equal to; $8,000 B. $8,000; more than; $7,500 C. $7,650; less than; $8,000 D. $7,500; less than; $8,000 E. $7,500; equal to; $7,500