In the typical leisure/consumption model, an increase in the wage is equivalent to a decrease in the price of the composite consumption good.
Answer the following statement true (T) or false (F)
True
Rationale: The two scenarios both increase the slope of the worker budget constraint without changing the horizontal intercept (assuming leisure is modeled on the horizontal axis.)
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Direct franchising ________ firms to retain close control over their foreign franchises, but ________ give firms familiarity with foreign markets, laws, traditions, and social customs.
A) allows; does not B) allows; does C) does not allow; does not D) does not allow; does
A firm, judged to be a natural monopoly in a small rural market like Centerville, may be considered monopolistically competitive in a market such as New York City
Indicate whether the statement is true or false
?Exhibit 10A-1 Aggregate demand and supply model
?Beginning in Exhibit 10A-1 from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2 . The economy's path to a new long-run equilibrium is represented by a movement from:
A. ?E3 to E1 to E2. B. ?E1 to E3 to E2. C. ?E2 to E1 to E2. D. ?E1 to E2 to E3.
There will be a surplus of a product when:
A. consumers want to buy less than producers offer for sale. B. price is below the equilibrium level. C. the demand and supply curves fail to intersect. D. the supply curve is downward sloping and the demand curve is upward sloping.