According to the substitution effect of labor supply, when the wage rate goes up:
A. it becomes more costly to consume leisure, so people will work more.
B. it becomes less costly to consume leisure, so people will work more.
C. the opportunity cost of enjoying leisure goes down.
D. firms will hire more workers since people are more willing to work.
Answer: A
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Which of the following is a necessary condition for successful price discrimination?
A) The seller must possess market power. B) Transactions costs must be zero. C) The buyer must possess market power. D) Buyers must have identical inelastic demands.
In the development of the IS curve, one variable that turns from exogenous to endogenous is
A) the interest rate. B) the price level. C) consumption. D) saving. E) investment.
Suppose the base year of the CPI is 2010, and the CPI calculated for 2012 was 102. What is the correct interpretation of this number?
A. Average prices in the economy have increased by 102 % since 2010. B. Average prices in the economy have increased by 1.9 % since 2010. C. The cost of living for a typical consumer is 2 % higher than it was in 2010. D. The average goods of all consumers has risen an average of 2 % from 2010 to 2012.
How have changes in farming technology influenced the United States over time?
a. The economy has come to rely on imports for most of its agricultural products. b. A much larger percentage of total resources has been shifted to farming. c. They have allowed a much higher percentage of people to find jobs in the agricultural industry. d. The percentage of people who farm has dropped to a small fraction of what it once was.