How does a temporary technological improvement that raises labor's marginal productivity affect the supply of labor?
a. There is no change in labor supply-changes in marginal productivity affect only labor demand.
b. The fall in labor supply is greater than if the improvement were permanent.
c. Labor supply will rise only if employers are willing to pay compensating differentials.
d. Income effects lower labor supply, while intertemporal substitution raises labor supply.
d. Income effects lower labor supply, while intertemporal substitution raises labor supply.
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One of the most important changes in the composition of the labor force in the United States has been
A. the major increase in the number of women who work outside the home. B. the drop in the number of men who only work part-time. C. the steady decline in the number of women who work. D. the increase in the ratio of male workers to female workers. E. the major increase in the number of men who work away from the home or farm.
If Second National Bank has more rate-sensitive assets than rate-sensitive liabilities, it can reduce interest-rate risk with a swap that requires Second National to
A) pay fixed rate while receiving floating rate. B) receive fixed rate while paying floating rate. C) both receive and pay fixed rate. D) both receive and pay floating rate.
One way to allocate the scarce good created from an effective price ceiling is to:
`A. offer it on a first-come, first-served basis. B. ration a certain quantity per household. C. give them to the friends and family of the producers. D. All of these are examples of allocating using non-price methods.
The exchange rate is
a. another term for "interest rate." b. another term for "growth rate." c. the rate at which goods trade for one another across international borders. d. the price of one currency in terms of another currency.