The upward-sloping character of the labor supply schedule assumes that the ________
A) the substitution effect is equal to the income effect
B) the substitution effect is larger than the income effect
C) the substitution effect is smaller than the income effect
D) the ratio of real wages to the marginal product of labor is equal to the equilibrium nominal wage
B
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NOW accounts were developed in order to
A) circumvent Regulation Q. B) provide banks with a checkable deposit on which they did not have to pay interest. C) provide banks with a liquid, interest-earning asset. D) provide banks with a means of earning interest on the funds in their reserve accounts with the Fed.
The manager of Steel Works learns of a new technological interdependency between the first stage and the intermediate stage of production. If Steel Works currently contracts with another firm for the first stage of production, which of the following is true?
A) The manager has more of an incentive to integrate backward. B) The manager has more of an incentive to integrate forward. C) The manager has less of an incentive to integrate backward. D) The manager has less of an incentive to integrate forward.
Charging different customers different prices is always illegal in the United States
a. True b. False
The law of diminishing marginal utility suggests that
A. People are willing to buy additional quantities of a good only if its price falls. B. As marginal utility decreases, the willingness to pay increases. C. People will substitute lower-priced goods for more expensive goods, ceteris paribus. D. Price and quantity demanded are directly related.