The income effect describes the:
A. increase in the quantity of labor supplied in response to a higher wage.
B. decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income.
C. decrease in the quantity of labor supplied in response to a lower wage.
D. increase in the quantity of labor supplied due to the greater demand for leisure caused by a higher income.
B. decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income.
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A) does not change; equal to B) shortens; equal to C) shortens; greater than D) lengthens; less than E) lengthens; greater than
Use the general relationship between marginal and average values to explain why a marginal cost curve must intersect an average total cost curve and an average variable cost curve at their minimum points
What will be an ideal response?
Which of the following is the most effective tool used by the Fed?
a. Converting state-chartered banks to nationally-chartered banks b. Shifting deposits from one District Fed to another c. Producing currency to increase the money supply d. Using the federal funds market e. Open market operations
If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. positive B. break-even C. negative D. zero