All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:
A. a higher opportunity cost of taking the day off work.
B. the same opportunity cost of spending time on leisure activities.
C. a higher opportunity cost of working an additional hour.
D. a lower opportunity cost of driving farther to work.
Answer: A
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The main reason why income per capita and income per worker varies across countries is because ________
A) prices vary across countries B) currencies vary across countries C) productivity varies across countries D) interest rates vary across countries
Refer to Figure 17-4. Which of the following is true if the wage rate increases from W1 to W2?
A) The substitution effect becomes larger than the income effect. B) The income effect becomes larger than the substitution effect. C) The supply curve is unit elastic. D) The income effect and the substitution effect are equal.
Which is least likely to help in understanding who bears the tax incidence?
A. Supply elasticity B. Demand elasticity C. Who the tax is levied on D. Whether or not supply is fixed
A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed. B) is the sum of all of its short-run average cost curves. C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output. D) all of the above