According to the theory of the backward-bending labor supply curve, as the hourly wage keeps rising we
A. eventually reach a maximum number of hours worked.
B. eventually reach a minimum number of hours worked.
C. keep increasing indefinitely the number of hours worked.
D. will work a set number of hours whether or not the wage rate is increased.
A. eventually reach a maximum number of hours worked.
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The more money an average household spends on one specific type of good or service per month, the
A) smaller the relative importance of that item in the CPI market basket. B) larger the relative importance of that item in the CPI market basket. C) costlier it will be to conduct the Consumer Expenditure Survey. D) less significant an increase in the price of that good or service will be for the household. E) more frequently its price is checked when calculating the CPI.
A firm that is a price maker can
a. limit output and raise prices. b. ignore the law of demand. c. ignore the elasticity of the demand for the product. d. both limit output and raise prices and ignore the elasticity of the demand for the product.
In the money market, an excess demand for money is equivalent to an excess demand for bonds
Indicate whether the statement is true or false
Which of the following statements is most correct?
A. We cannot compute either the ex post or ex ante real interest rates accurately. B. We can accurately compute the ex ante real interest rate but not the ex post real rate. C. We can always compute the ex post real interest rate but not the ex ante real rate. D. None of the statements are correct.