In general in the real world labor market the:
A. price effect usually dominates, and thus we assume a downward sloping supply curve.
B. income effect usually dominates, and thus we assume a downward sloping supply curve.
C. price effect usually dominates, and thus we assume an upward sloping supply curve.
D. income effect usually dominates, and thus we assume an upward sloping supply curve.
C. price effect usually dominates, and thus we assume an upward sloping supply curve.
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If the demand curve for tacos is a downward sloping straight line, at which of the following prices is the demand the most elastic?
A) a price of $0.50 per taco B) a price of $1.00 per taco C) a price of $1.50 per taco D) There is not enough information given to determine at which price the demand is most elastic.
If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that
A) the number of iTunes music downloads would increase. B) there would be no change in the demand for iTunes music downloads. C) the number of iTunes music downloads would decrease. D) iTunes music supply would change but demand would not.
Which of the following is a point made by economist Richard Easterlin (for whom the Easterlin Paradox is named) based on his research?
A) Rich people tend to be happier than poor people in the same country. B) People in richer countries tend to be no happier than people in poorer countries. C) People in richer countries tend to be much happier than people in poorer countries. D) People in poorer countries tend to be much happier than people in richer countries. E) a and b
The optimal hiring rule is to employ labor up to the point where:
A. wage = MFC. B. wage = MP. C. wage = MR D. wage = MRP