Labor demand is decreasing in the wage because
A) the substitution effect is larger than the income effect.
B) the income effect is larger than the substitution effect.
C) the production function is concave.
D) the marginal product of labor is increasing in labor.
C
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The market for used cars is shown in the above figure. Ten percent (10%) of all cars are lemons. A mechanic is offering to inspect a car for sale and certify that a car is not a lemon
If car sellers are risk neutral, what is the highest price that a car seller would pay for such a service? Who would buy this service?
A decision made by a rational person
A) is intended to make the person worse off. B) would always make the person wealthier. C) is identical to a decision that would be made by any other person facing the same choices. D) is intended to make the person better off.
If the CPI declines from one year to the next, then the following statements are true, except:
A. There is deflation B. The inflation rate is negative C. The average price level is decreasing D. The CPI turns negative in the next year
Which of the following shows the net difference between how much Americans forgave in debts owed to them by foreigners compared with how much foreigners forgave debts owed to them by Americans?
A. Current account B. Capital account C. Financial account D. Net transfers