Refer to Figure 5-1. At the efficient equilibrium,
A) economic surplus is minimized. B) economic surplus is maximized.
C) economic surplus is zero. D) economic surplus is negative.
B
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A professional tennis player enters fewer tournaments each year as the prize money she won increased. This observation indicates that the tennis player
A) is irrational. B) has shifted her labor demand curve leftward. C) has shifted her labor supply curve rightward. D) has a backward bending labor supply curve.
Individuals who suffer from unemployment spells lasting more than six months are ________
A) chronically unemployed B) frictionally unemployed C) discouraged workers D) no longer counted as part of the labor force
Which of the following would cause an increase in demand for Toyota automobiles?
a. an increase in the price of Toyota automobiles b. a decrease in the price of Toyota automobiles c. a decrease in the price of Honda automobiles d. an increase in the price of Honda automobiles
A decrease in corporate profits, resulting in a decline in dividend payments, will decrease consumption and decrease labor supply.
Answer the following statement true (T) or false (F)