Explain why a single labor supply curve can have both a positive and negative elasticity
What will be an ideal response?
The labor supply curve will have a positive elasticity when an increase in wages induces more people to enter the workforce. However, as wages rise workers become better off and may trade some labor for more leisure. At this higher wage level the elasticity of labor supply becomes negative as higher wages cause a reduction in the labor supply.
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In the economic way of thinking, private property rights provide people with
A) rules of the game. B) dependable information. C) incentives. D) none of the above. E) all of the above.
Suppose the Bureau of Labor Statistics interviews 196,700 people in its monthly survey; 94,500 are not in the labor force, 91,150 are employed, 8,870 are unemployed, and 2,180 are in the armed forces
What is the unemployment rate the BLS announces? A) 8.87 percent B) 9.73 percent C) 9.39 percent D) 4.51 percent E) 10.81 percent
Suppose a = 50, c = 0.8, and T = 410. How much is saved out of a total income of 1230?
A) 706 B) 606 C) 278 D) 196 E) 114
Suppose in an economy, investment = $40, saving = $50, government spending+export = $100 and taxes+imports = $110 . Then for this economy, total leakages exceed total injections by:
a. $30. b. $25. c. $10. d. $45. e. $20.