When wages increase:
a. the quantity of labor supplied by an individual always increases.
b. the quantity of labor supplied by an individual always decreases.
c. the opportunity cost of leisure time increases
d. the opportunity cost of leisure time decreases.
c
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The opportunity cost of leisure is
A) the substitution effect. B) the income effect. C) a person's income. D) a person's wage rate.
Use the figure below to answer the following question.
The marginal benefit of the second unit of X is ________.
A. 17 B. 4 C. 5 D. 11
Which of the following correctly describes crowding out?
a. The displacement of interest-sensitive private investment that occurs when increased government deficit spending drives up interest rates. b. The potential for government spending to stimulate private investment in an otherwise sluggish economy. c. The displacement of poverty-stricken people from low-income assistance programs when outlays are reduced to balance the federal budget. d. The decline in market interest rates on account of increased fiscal spending on welfare programs.
Specialization—the division of labor—enhances productivity and efficiency by:
A. allowing workers to take advantage of existing differences in their abilities and skills.
B. avoiding the time loss involved in shifting from one production task to another.
C. allowing workers to develop skills by working on one, or a limited number, of tasks.
D. all of the means identified in the other answers.