Which of the following best explains the shape of the individual labor-supply curve?
a. The individual labor-supply curve is exactly like any supply curve, it always has a positive slope.
b. The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure.
c. The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates.
d. The individual labor-supply curve must be vertical because each person can work only eight hours per day.
e. The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.
c
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In a competitive market with high cost and low cost consumers (where firms are unable to tell consumer types apart), any screening costs incurred by firms will be passed on to low cost consumer but not to high cost consumers.
Answer the following statement true (T) or false (F)
Explain why price levels are lower in poorer countries
What will be an ideal response?
A one-unit increase in government expenditures should, according to the model, increase GDP by
A) 0. B) between zero and one unit. C) one unit. D) more than one unit.
A reduction in regulation will shift the aggregate:
a. supply curve leftward. b. supply curve rightward. c. demand curve leftward. d. demand curve rightward.