As the market wage increases:
a. the income effect normally influences you to work more.
b. the income effect normally influences you to work less.
c. the substitution effect normally influences you to work less.
d. the substitution effect normally influences you to involve in nonmarket work.
b
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The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.
When actual GDP does not rise as fast as potential GDP, the economy most likely will experience
A. inflation. B. recession. C. economic growth. D. falling unemployment.
Suppose a country begins to allow international trade in steel. Which of the following outcomes will be observed regardless of whether the country finds itself importing steel or exporting steel?
a. The sum of consumer surplus and producer surplus for domestic traders of steel increases. b. The quantity of steel demanded by domestic consumers increases. c. Domestic producers of steel receive a higher price for steel. d. The losses of the losers exceed the gains of the winners.
If the marginal product of labor equals the average product of labor, then the
A. marginal product is still increasing. B. average product is maximized. C. average product is still increasing. D. marginal product is maximized.