If Sam receives a pay cut and the income effect outweighs the price effect on his labor supply decision, he will:
A. work more hours.
B. work less hours.
C. work the same hours no matter what.
D. quit and not work at all.
A. work more hours.
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Total profit equals
A. TR ? TC. B. average profit times total output. C. total sales revenue minus total cost. D. All of the responses are correct.
Property rights
A) only need to be found in wealthy segments of the population. B) need to be universal. C) do not promote incentives. D) do not promote efficiency
In the classical model, the supply of funds to the loanable funds market comes from
a. household saving and the government's budget surplus, if any b. net taxes c. household saving and the government budget deficit, if any d. planned investment e. total income
Suppose Country A, a relatively capital-abundant country, experiences further expansion in its endowment of capital. Explain how this might affect its volume (amount) of trade and its terms of trade with the rest of the world. Under what conditions (if any) would the economic well-being of Country A decline after the increase in its capital endowment?
What will be an ideal response?