Empirical evidence with respect to the labor supply decision suggests that the substitution effect seems to dominate for most people, which means that the aggregate labor supply responds ________ in the wage rate.
A. positively to a decrease
B. independently from an increase or a decrease
C. negatively to an increase
D. negatively to a decrease
Answer: D
You might also like to view...
When consumption is rival and excludable, the product is a
A) public good. B) private good. C) mixed good. D) service, not a good.
If commercial banks are increasing their borrowing from the Fed while the Fed is selling government securities, the borrowing of the commercial banks from the Fed will tend to:
a. reinforce the contractionary open market operations policy. b. reinforce the expansionary open market operations policy. c. counteract the contractionary open market operations policy. d. counteract the expansionary open market operations policy.
Suppose a company's bond sold for $900 last month and this month the price is $750. The annual interest payment is $60. The current yield on this bond is
A. 11.11 percent. B. 6.7 percent. C. 8.0 percent. D. 60.0 percent.
The AFL and CIO merged because it was thought that
A) organized labor would grow faster as a result. B) union pension funds would shrink as a result. C) strikes could be averted. D) managers would be more sympathetic to unions.