The substitution effect of a wage increase is observed when
A) leisure's higher opportunity cost causes workers to take more leisure and work less.
B) leisure's higher opportunity cost causes workers to take less leisure and work more.
C) the higher wage income causes workers to take more leisure and work more.
D) the higher wage income causes workers to take more leisure and work less.
B
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An example of a price floor is a
A) rent control. B) minimum wage. C) subsidy. D) quota.
Which of the following institutions is the most important participant in foreign currency markets?
A) A retail customer B) A commercial bank C) A foreign exchange broker D) A central bank E) None of the above.
Which of the following raises the economic freedom of a country?
a. Limited international movement of productive resources b. Higher taxes c. Red-tapism and bureaucracy d. Reduction of trade barriers like tariffs and quotas e. Reduction of government subsidies on gasoline
In a country with a working-age population of 22 million, 16 million are employed, 2 million are and 1 million of the employed are working part-time, half of whom wish to work full-time. The employment-to-population ratio is
A) 65 percent. B) 57.5 percent. C) 72.7 percent. D) 75.5 percent. E) none of the above.