In order for a labor supply curve to be backward bending at high wages
A) workers must have an irrational response to wage increases.
B) leisure must be an inferior good.
C) the substitution effect of a wage increase must be greater than the income effect.
D) the income effect of a wage increase must be greater than the substitution effect.
D
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According to Keynes, an individual's level of saving is primarily determined by
A) the individual's current level of disposable real income. B) the individual's assessment of the future direction of the stock market. C) real Gross Domestic Product (GDP) for the economy. D) the interest rate.
________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium
A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost
In the legal sector, some practice areas have declined in recent years
For example, personal-injury and medical-malpractice cases have been undercut by state laws limiting class-action suits, out-of-state plaintiffs, and payouts on damages, and securities class-action litigation has declined in part because of a buoyant stock market. How does this affect the market for lawyers? A) The quantity of lawyers demanded decreases and this is represented by a movement along the demand curve. B) The supply of lawyers shifts to the left. C) The demand for lawyers shifts to the left. D) Both the demand and supply curves decrease.
A cost of living adjustment (COLA)
a. changes wages by the same percentage every year. b. decreases wages by the inflation rate. c. increases wages by the inflation rate. d. changes prices of consumer goods by the inflation rate.