A person is more likely to increase labor supply in response to an increase in the real wage, the ________ is the income effect and the ________ is the substitution effect.
A. smaller; smaller
B. larger; smaller
C. smaller; larger
D. larger; larger
Answer: C
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Using a graph, show the effects of a negative externality. Where is the socially optimum point of output? How can it be achieved?
What will be an ideal response?
As the real wage increases, the opportunity cost of working outside the home increases
a. True b. False
Gross domestic product is
a. the market value of all goods and services exchanged within a country during a time period. b. the market value of all domestic assets, regardless of whether they are owned by citizens or foreigners. c. the compensation received during a period for labor services plus interest, rents, and corporate profits. d. the market value of final goods and services produced within a country during a time period.
In this example, why is the graph for total utility curved whereas the graph for marginal utility is straight?
a. Total utility has a constant positive slope whereas marginal utility has a constant negative slope.
b. The slope of the total utility graph is positive but constantly decreasing at the rate shown on the marginal utility graph.
c. The slope of the marginal utility graph is negative but constantly increasing at the rate show on the total utility graph.
d. Marginal utility has a constant positive slope whereas totally utility has a constant negative slope.