In labor markets, the substitution effect occurs when
A) a substitute good also functions as a complement.
B) the cost of production falls enough that the firm will produce a larger amount of output.
C) a change in the price of a substitute input causes the demand for labor to change in the same direction.
D) a change in the price of a substitute input reduces the cost of capital.
C
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Double-entry bookkeeping is a system of accounting in which:
a. it is ideal for credits to be greater than debits. b. it is ideal for debits to be greater than credits. c. each transaction is recorded in the same account twice. d. only foreign and domestic accounts are used. e. the debit total must equal the credit total for the transactions as a whole.
Enterprises obey horizontal orders if the reward from the vertical transaction exceeds the reward from the horizontal transaction
a. True b. False
Welfare economics is the study of how
a. the allocation of resources affects economic well-being. b. a price ceiling compares to a price floor. c. the government helps poor people. d. a consumer's optimal choice affects her demand curve.
A closed shop is one in which
A) a union is prohibited. B) some members belong to the union while others do not. C) belonging to a union is a condition of employment. D) the union is a co-manager of the day-to-day operations of the firm.