What is the shape of the labor supply curve implied by the following statements?
a. "I'm sorry, kids, but now that I'm earning more, I just can't afford to come home early in the afternoon, so I won't be here when you get home from school."
b. "They can pay me a lot or they can pay me a little. I'll still put in my 8 hours a day."
c. "Now that I have received a salary increase, I am going to work 36 hours instead of 40 hours a week"
a. upward sloping
b. vertical
c. backward bending
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The relationship between households' planned consumption expenditures and households' level of disposable real income is called
A) the consumption function. B) the savings function. C) the investment function. D) the household aggregate demand function.
If services are purchased from others that were once performed internally, then a firm has
A) downsized. B) outsourced. C) reduced the economies of scope. D) experienced diseconomies of scale.
Which of the following is the term used when average costs go down as the measure of output goes up?
a. Relative advantage b. Absolute advantage c. Comparative advantage d. Economies of scale
When a society decides to increase its quantity of physical capital, the society
a. can avoid the usual need to face trade-offs. b. is apparently not very concerned about its rate of economic growth in the future. c. is in effect deciding to consume fewer goods and services in the present. d. is in effect deciding to save less of its current income in the present.