Comment on the following statement: "An increase in the wage always leads to an increase in the quantity of labor supplied."
What will be an ideal response?
The statement is false. If the substitution effect is larger than the income effect, a wage increase will lead to an increase in the quantity of labor supplied. However, if the income effect is larger, an increase in the wage will actually lead to a decline in the quantity of labor supplied.
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Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.25 per can, then what will be the market demand for soda each week? 
A. 90 cans B. 60 cans C. 70 cans D. 130 cans
Use of bovine growth hormone (BGH) on cattle dramatically increases the milk output of dairy cows. Dairy farmers in Wisconsin vigorously oppose permitting the drug’s use over concerns of an excess supply and a consumer reaction on the purity of food issue that could put many of them out of business. Which of the graphs in Figure 4-13 is consistent with these concerns?
A. 1 B. 2 C. 3 D. 4
It is illegal in the United States for firms to pay different employees different wages for doing the same job
a. True b. False Indicate whether the statement is true or false
Most economists
A. favor tariffs. B. favor quotas. C. advocate "fair trade." D. Economists do not favor any of these.