The supply curve of labor is typically upward sloping because
a. a decrease in the wage rate causes workers to work more hours
b. the opportunity cost associated with giving up leisure time rises
c. some workers leave the industry when the wage rate is too high
d. all workers show the same willingness to work at a given wage rate
e. the price of the good rises as more workers are hired and more output is produced
B
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The selling of a product for a price below its cost of production is called
A) operating at a loss. B) unfair competition. C) fair competition. D) dumping.
Suppose households decide to reduce savings because they want to enjoy more present time than future time. In this case, the loanable funds model predicts that
A) interest rate goes down, and quantity of borrowed funds increases. B) interest rate goes down, and quantity of borrowed funds decreases. C) interest rate goes up, and quantity of borrowed funds decreases. D) interest rate goes up, and quantity of borrowed funds increases.
You have just won a cash award of $500 for academic excellence
A) The substitution effect of this award will be larger than its income effect. B) The income effect of this award will be larger than its substitution effect. C) The substitution and income effects will be of identical size. D) It is impossible to know whether the substitution effect is larger than the income effect or vice versa.
One of the most centrally planned economies in the world today is found in
a. the United States b. Germany c. Canada d. Japan e. North Korea