The substitution effect of a wage rate decrease suggests that
A. individuals will supply less work.
B. individuals will consume less leisure.
C. individuals will supply more work and consume less leisure.
D. individuals will supply more work.
Answer: A
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A Gini coefficient of one indicates
a. the richest 10 percent of the people control 90 percent of the economy's income b. the poorest 10 percent of the people control 1 percent of the economy's income c. 50 percent of the people control 50 percent of the income d. perfect income equality e. perfect income inequality
In 2014 income per person in the United States was about 10 times that in India
a. True b. False Indicate whether the statement is true or false
Dee loves to landscape her yard, but her neighbor Marvin places a low value on his landscaping. When Marvin's grass is neglected and gets long, Dee will mow it for Marvin. This is an example of
a. a situation in which the Coase theorem fails to explain the lawn mowing arrangement. b. an improper allocation of resources. c. a private solution to a negative externality problem. d. an exploitation of a common resource.
Objections to monopolies do not include which of the following?
a. They reduce output below the efficient level of output that would be produced in perfect competition. b. They reduce the price below what would be charged in perfect competition. c. They charge a price that is greater than marginal cost. d. They create a welfare cost. e. All of the preceding are objections to monopolies.