The substitution effect in the labor supply decision refers to
a. substituting leisure for work as the wage rate rises
b. substituting market work for nonmarket work as the wage rate falls
c. working more hours as the wage rate falls
d. working fewer hours as the wage rate rises
e. substituting market work for leisure or nonmarket work as the wage rate rises
E
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If a country's trade surplus falls, its net capital outflow rises
a. True b. False Indicate whether the statement is true or false
An increase in the real value of stock prices, which is independent of a change in the price level, would best be an example of the:
a. Foreign purchases effect b. Wealth effect c. Interest-rate effect d. Real-balances effect
Total purchases of new final goods equals total output of new final goods in the income and product accounts
What will be an ideal response?
If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that
A) average variable costs are $100. B) average total costs are $100. C) average fixed costs are $100. D) marginal costs are $100.