The empirically observed backward-bending labor supply curve cannot arise from homothetic tastes.
Answer the following statement true (T) or false (F)
True
Rationale: Homothetic tastes can give rise to downward or upward sloping labor supply curves, but not both (which is what is required for a backward bending labor supply curve.)
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The positively-sloped part of the long-run average total cost curve is due to which of the following?
A) Diseconomies of scale. B) Diminishing returns. C) The firm being able to take advantage of large-scale production techniques as it expands its output. D) The increase in productivity that results from specialization.
Countries are divided into groups based on income. What income group is most common?
a. middle income ($1,025-$12,475 GDP/capita) b. low income (less than $1,025 GDP/capita). c. high income (greater than $12,475 GDP/capita). d. high and low income groups have the same number.
Which of the following statements is (are) true?
A) A model is a set of simplifying assumptions about some aspect of the real world. B) Models are based on assumed conditions that are simpler than those of the real world. C) A model cannot be a complete representation of the real world. D) All of the above are true.
Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations:QS = -25 + 10PQD = 875 - 5PIf the United States can import MP3 players from the rest of the world at a per unit price of $50, what will be the total demand for MP3 players in the United States?
A. 475 B. 925 C. 550 D. 625