In Figure 30.1, the movement from point G to point F along the labor supply curve S1 is a result of
A. The substitution effect of a higher wage rate.
B. Increased job satisfaction.
C. A lower wage rate.
D. The income effect of higher wages.
Answer: C
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A firm's principals are its
A) shareholders. B) management. C) values. D) customers.
A requirement that the budget be balanced each and every year would worsen the severity of economic fluctuations by preventing which of the following from working?
a. budget surpluses b. budget deficits c. automatic stabilizers d. manual stabilizers
In which of the following models of firm behavior do firms make strategic pricing decisions and also charge a perfectly competitive price?
A. Contestable market model of oligopoly B. Monopoly model C. Perfectly competitive model D. Cartel model of oligopoly
Defined-benefit plans:
A. pay a pension based on the amount contributed into the plan by the employee and employer. B. do not require any responsibility on the part of the employer for the employees' retirement income; it is based on employee contributions. C. are more common than defined contribution plans. D. usually require an employee to work a very long time for the same employer in order to reap a large benefit.