In the case of leisure, the substitution effect implies that:
A) when the price of leisure increases, people will work more.
B) when the price of leisure increases, people will work less and relax more.
C) if people tend to work more and relax less, the price of leisure increases.
D) if people tend to work more and relax less, the price of leisure decreases.
A
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In the long run, the economy tends towards
a. the natural rate of unemployment b. the structural unemployment rate c. the frictional unemployment rate d. the cyclical unemployment rate
You own shares in a well-managed and diversified company. If a booming economy decreases investors' concerns about market risk, then the price of your shares will ________, holding other factors constant.
A. decrease B. not change C. increase D. either increase or decrease
The opportunity cost to a consumer who smokes cigarettes consists of the
A. costs imposed on others who inhale second-hand smoke. B. amount of cigarette taxes paid by this consumer. C. product that the consumer could have bought instead of cigarettes. D. cost of complementary products such as lighters, ashtrays, and cigarette holders.