At high wage rates, the labor supply curve bends backward because the ________ effect dominates the ________ effect
A) income; price
B) substitution; income
C) substitution; price
D) income; substitution
D
You might also like to view...
A single-price monopoly will set its price according to which of the following rules?
A) P = MR and MR = MC B) P = MC where the MC curve crosses the demand curve C) P = MR where the MR curve crosses the demand curve D) None of the above answers is correct.
Ceteris paribus, an increase in the current or actual rate of inflation will cause
A) the unemployment rate to decrease (a movement along the short-run Phillips curve). B) the long-run Phillips curve to shift leftward. C) expectations of future inflation rates to be revised downward. D) the short-run Phillips curve to shift upward.
Refer to Figure 10.1. The minimum feasible price is ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
Asset demand for money is related to money functioning as a
A) unit of accounting. B) medium of exchange. C) store of value. D) medium of deferred payment.