If the income effect outweighs the price effect of a wage increase, the quantity of labor supplied will:
A. remain constant.
B. increase.
C. drop to zero.
D. decrease.
Answer: D
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If one party pays a fixed fee on a regular basis in return for a contingent payment that is triggered by a downgrading of a firm's credit rating, that is called a
A) credit option. B) credit swap. C) credit-linked note. D) credit default swap.
In the estimation of demand, the "identification problem" refers to
A) the problem of selecting the proper level of significance. B) the problem of deciding whether to use time series or cross-sectional data. C) the problem of separating out the effects of price on the quantity demanded when supply cannot be held constant. D) the problem of having insufficient variation in prices.
Enforcement of antitrust laws is the responsibility of
a. only the Department of Justice b. only the Federal Trade Commission c. only the Antitrust Division d. both the Justice Department and the Federal Trade Commission e. the President
The price of a good tends to decrease if there is a shortage of that good in the market
a. True b. False Indicate whether the statement is true or false