The income effect of a decrease in the wage rate causes the quantity of labor supplied to
a. increase
b. increase only if the individual desires more leisure time
c. increase only if the substitution effect outweighs the income effect
d. decrease
e. decrease only if the substitution effect is weaker than the income effect
A
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Anna owns the Sweet Alps Chocolate store. She charges $10 per pound for her hand made chocolate. You, the economist, have calculated the elasticity of demand for chocolate in her town to be 2.5
If she wants to increase her total revenue, what advice will you give her?
An increase in the size of the working-age population:
A. increases labor supply. B. decreases labor supply. C. increases labor demand. D. decreases labor demand.
Refer to the graph shown.
The diagram demonstrates that an increase in the price of soda will:
A. raise the quantity demanded of chocolate bars. B. reduce the quantity demanded of soda. C. raise the quantity demanded of soda. D. raise the consumer's available income.
Exhibit 9-1 GDP and consumption data GDP Consumption Aggregate Expenditures Unplanned inventory $0 $0.5 1 1.0 2 1.5 3 2.0 4 2.5 5 3.0 6 3.5 7 4.0 8 4.5 As shown in Exhibit 9-1, if investment is $0.5 trillion, government spending is $1 trillion, net exports are ?$0.5 trillion, and GDP is $2 trillion, then:
A. inventory depletion is ?$1.5 trillion. B. inventory accumulation is ?$2.0 trillion. C. inventory depletion is ?$0.5 trillion. D. inventory accumulation is $0.5 trillion.