A good is an inferior good if the consumer buys less of it when
A. his income rises.
B. the price of the good rises.
C. the price of a substitute good falls.
D. his income falls
Answer: A. his income rises.
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In a small country, the adult population is 10,000. In that country, 7,000 people are in the labor force and 6,300 people are employed. The unemployment rate equals
A) 0.63 percent. B) 7 percent. C) 10 percent. D) an undetermined amount given the lack of information.
Are returns to a single input and returns to scale one and the same? Explain.
What will be an ideal response?
The market labor-supply curve has all of the following properties except it:
A. reflects people's willingness to work more when wages are higher. B. is always upward sloping. C. shows the relationship between the price of labor and the quantity supplied. D. shifts with changes in the opportunity cost for work
The quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment determine the:
A. real interest rate. B. average labor productivity. C. labor force participation rate. D. unemployment rate.