The labor supply curve reflects how
a. workers' decisions about the labor-leisure tradeoff respond to a change in the wage.
b. workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied.
c. firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded.
d. firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.
a
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In the production of goods and services, trade-offs exist because
A) not all production is efficient. B) society has only a limited amount of productive resources. C) buyers and sellers often must negotiate prices. D) human wants and needs are limited at a particular point in time.
If a perfectly competitive firm with a known demand and random marginal cost is producing at a level in which the marginal cost is less than the expected marginal cost and the marginal revenue, which of the following is true?
A) To maximize expected profit, the firm should decrease production. B) To maximize expected profit, the firm should decrease production by one -half. C) The firm is maximizing expected profit. D) To maximize expected profit, the firm should increase production.
In the United States, which of the following is an example of a government-inhibited good?
A) museums B) concerts C) cigarettes D) sports stadiums
Theories and models are explanations of how things work that help us understand and predict how and why economic agents like consumers, producers, firms, government, etc. behave they way they do
a. True b. False Indicate whether the statement is true or false