If my wage rate increases, utility maximization requires that my quantity of labor supplied
a. increase
b. decrease
c. increase if the income effect dominates the substitution effect
d. increase if the substitution effect dominates the income effect
e. increase if the substitution effect equals the income effect
D
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To encourage economic development a country should do all of the following EXCEPT
A) establish a system of property rights. B) allow creative destruction to run its course. C) limit the amount of imports allowed into the country. D) invest in human capital.
People tend to eat more at all you can eat buffets than they would at any other restaurants. This is so because the cost of consuming an additional item at an all you can eat buffet is
a. negative b. zero c. positive d. None of the above
Janie decides to give up her $200,000 a year job as the producer of the most popular television news show in Seattle in order to cultivate and sell orchids, which she anticipates will yield her an annual income of $30,000 . To an economist,
a. she may be mother earth, but she's not making a rational economic decision b. it is impossible to comment on her decision because we can't engage in interpersonal comparisons of utility c. her total utility will fall d. there is no doubt that the utility she gains from working with orchids must be greater than the utility she gains working as a television producer e. it is clear that working has a negative utility for her
If a nation produces less than it spends what do we know about: A. its net exports? B. its net capital outflow? C. its saving in relation to its domestic investment?