For many jobs, as wages increase, the quantity supplied of labor increases. This set of facts is evidence that the
A) substitution effect is larger than the income effect and the supply of labor curve is upward sloping.
B) income effect is larger than the substitution effect and the supply of labor curve is upward sloping.
C) substitution effect is larger than the income effect and the supply of labor curve is backward bending.
D) income effect is larger than the substitution effect and the supply of labor curve is backward bending.
A
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A perfectly competitive market is characterized by a large number of small firms that produce a differentiated product
Indicate whether the statement is true or false
Appropriate supply-side policy (or policies) during a recession would be to do which of the following?
a. Cut taxes on business. b. Reduce costly regulations on businesses. c. Increase government spending. d. Both a. and b. above are correct.
Which of the following had resulted from the Smithsonian agreement of 1971?
a. Devaluation of the U.S. dollar b. Dissolution of a fixed exchange rate regime c. Appreciation of the U.S. dollar d. Establishment of an equilibrium exchange rate e. Laissez-faire in the foreign exchange market
A bank's balance sheet shows
a. information about the riskiness of its loans b. the amount of money loaned to each individual borrower c. the amount of cash in the hands of the public d. the number of checking accounts it maintains e. the bank's assets and liabilities