The phenomenon whereby labor decreases in response to a decrease in the wage rate is called
a. the substitution effect.
b. the scale effect.
c. derived demand from a change in wage.
d. the factor regressivity of labor.
a. the substitution effect.
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For a firm in monopolistic competition, selling costs
A) increase costs and reduce profits. B) always increase demand. C) can change the quantity produced and lower the average total cost. D) can lower total cost. E) have no effect on the quantity sold.
The market demand curve in a perfectly competitive market is downward sloping
Indicate whether the statement is true or false
The economic efficiency approach to emission control provides the polluting firm with
a. a license produce as much emissions as it wants b. the option of choosing between focusing on profit or cost c. a process for determining the optimum quantity of emissions d. more flexibility in selecting the most cost effective method of control e. a subsidy for producing additional emissions
If equilibrium is present in a market: a. there is either a shortage or a surplus
b. the quantity demanded equals quantity supplied. c. the quantity demanded exceeds quantity supplied. d. the quantity supplied exceeds quantity demanded.