In the indifference curve-budget line model of labor supply, the vertical intercept of the budget line represents
a. the worker's nonlabor income.
b. the wage rate paid to the worker.
c. the number of leisure hours enjoyed by the worker.
d. the number of hours of labor that the worker supplies.
a. the worker's nonlabor income.
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Since individual consumers do not know how much of the price they pay for a commodity is due to protection, consumers rarely lobby their political representatives to eliminate protection and reduce prices
a. True b. False Indicate whether the statement is true or false
Economists generally conclude that because GDP rose as a result of the response to the 2005 Hurricanes, they were really a good thing
a. True b. False
Figure 34-6
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From Figure 34-6, one can infer that
A. Honduras will be willing to trade bananas for corn at a unit ratio of no less than 2 corn:1 banana. B. Honduras will be willing to trade bananas as long as the unit exchange ratio is greater than 1/2 corn:1 banana. C. Honduras has no potential to gain from trade. D. Honduras will be unwilling to trade at an exchange ratio.
Compared to high-income developed countries, the per person income levels of poorer less developed countries are somewhat understated because
What will be an ideal response?