Jake experiences an increase in his wages. The hours of labor that he supplies to the market would decrease if
a. the income effect is larger than the substitution effect.
b. the substitution effect is larger than the income effect.
c. neither the income effect nor the substitution effect apply to Harry's labor-leisure tradeoff.
d. Jake views both labor and leisure as inferior goods.
a
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The ratio of the burden of the tax borne by demanders to the burden born by suppliers will be equal to the sum of the absolute values of the slopes of the demand curve and the supply curve
a. True b. False
In the United States, major league baseball is exempt from antitrust laws. Before 1975, the baseball team owners agreed to hold an annual draft of amateur baseball players
Once the players were drafted and signed by a team, they were effectively tied to that team for life. This allowed baseball owners to operate like ________ in the market for player services. A) perfect competitors B) monopolistic competitors C) a monopsonistic cartel D) a monopoly
Assume that capital and labor are complementary inputs. If the firm increases the amount of capital it employs, this would
A. cause the firm to move down along the MP schedule for labor. B. shift the firm's MP schedule for labor to the left. C. cause the firm to move up along its MP schedule for labor. D. shift the firm's MP schedule for labor to the right.
When the cost of producing a unit of a good decreases as its output rate increases, there are economies of
A) scale. B) scope. C) production. D) size.