In the worker's leisure/consumption model, the wage is the same as the price of consumption.
Answer the following statement true (T) or false (F)
False
Rationale: The price of the composite consumption good is by definition equal to 1 --- the wage is the price of taking leisure because it is how much a worker gives up when taking leisure.
You might also like to view...
Operations of the Trading Desk of the Federal Reserve Bank of New York are typically conducted
A) no more often than once per week. B) within a one-hour period during each day. C) no more often than once per month. D) once a year.
The data in the above table show that when the price level is 120
A) the unemployment rate is below its natural rate. B) the unemployment rate is above its natural rate. C) money wages rates will rise in the future. D) the long-run aggregate supply curve will shift leftward in the future.
You have decided to purchase, directly from the French manufacturer, a helicopter that costs 800,000 euros. At the equilibrium exchange rate between dollars and euros in Figure 36.1, this purchase will cost you
A. $1,600,000. B. $800,000. C. $200,000. D. $400,000.
Which of the following statements is most accurate about capital accumulation in a market system?
A. Capital good production is the primary driver of the demand for consumer goods. B. Capital accumulation is generally insufficient because consumers don't directly cast dollar votes for capital goods. C. The invisible hand directs the production of consumer goods, but government planning is required to effectively allocate resources to capital goods. D. Entrepreneurs and business owners cast dollar votes for capital goods based on the profitability of goods and services they sell to consumers.