When wages increase, the income effect of labor supply ________ the quantity of labor supplied because ________.
A. reduces; the price of leisure has increased
B. reduces; workers acquire more of all normal goods (including leisure) when income increases
C. increases; the value of working has increased
D. increases; the price of leisure has increased
Answer: B
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What typically happens to benefits as the amount of an activity is increased?
A) Total benefits remain constant. B) Marginal benefit increases. C) Marginal benefit remains constant. D) Marginal benefit decreases. E) The marginal benefit changes only if the marginal cost changes.
In May 2008, Switzerland co-hosted the international soccer tournament Euro 2008. At that time, the Swiss potato industry association had been warning there could be a fry shortage because there was a potato shortage
The shortage meant that in the French fry market A) the price for French fries would be higher. B) the price for French fries would be lower. C) if the efficient quantity of fries is produced, total surplus would be minimized. D) if the inefficient quantity of fries is produced, total surplus would be maximized.
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity
If Light-U-Up is regulated and must follow an average cost pricing rule, it will produce ________ and sell at a price of ________. A) 200 kwh; 30¢ per kwh B) 200 kwh; 25¢ per kwh C) 300 kwh; 20¢ per kwh D) 400 kwh; 15¢ per kwh
If currency outstanding equals $200 million, checkable deposits equal $1 billion, reserves equal $150 million, and the required reserve ratio is 0.10, the money multiplier equals
A) 0.86. B) 3.14. C) 3.43. D) 4.