Research on labor supply generally shows that
A. labor supply rises in response to a permanent increase in the real wage, but falls in response to a temporary increase in the real wage.
B. labor supply rises in response to both a temporary and a permanent increase in the real wage.
C. labor supply rises in response to a temporary increase in the real wage, but falls in response to a permanent increase in the real wage.
D. labor supply falls in response to both a temporary and a permanent increase in the real wage.
Answer: C
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Which statement is true?
A. it is easier to attain full employment than full production. B. employment discrimination no longer exists in the U.S. labor market. C. The United States is usually operating on the production possibilities frontier. D. None of these statements are true.
Assuming coffee and tea are substitutes, a rise in the price of coffee will have which of the following effects on the market for tea?
a. A movement up along the tea demand curve. b. A movement down along the tea demand curve. c. A leftward shift in the tea demand curve. d. A rightward shift in the tea demand curve.
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than
A) 108,000. B) 111,111. C) 137,500. D) 110,000.
The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.
A. multiplicative B. allocative C. rationing D. equilibrium