If Jay receives a pay cut and the price effect outweighs the income effect on his labor supply decisions, he will work:
A. zero hours.
B. more hours.
C. the same amount.
D. less hours.
Answer: D
You might also like to view...
A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If this consumer's income increases by $10 and consumption of shelter remains unchanged, how many more units of shelter can be purchased at most?
A) 10 B) 20 C) 50 D) 2
Some bank regulation limits the types of assets that banks may own. The intent of this regulation is to
a. protect banks from competition. b. provide banks with a minimum level of profits. c. limit the level of bank profits. d. maintain bank safety. e. All of the above are correct.
Which of the following is downward-sloping?
a. both the long-run Phillips curve and the short-run Phillips curve b. neither the long-run Phillips curve nor the short-run Phillips curve c. the long-run Phillips curve, but not the short-run Phillips curve d. the short-run Phillips curve, but not the long-run Phillips curve
For a monopolist:
A. price equals average total cost. B. price is above marginal revenue. C. marginal revenue equals zero. D. marginal cost equals zero.