When a labor supply curve is backward-bending, the elasticity of labor supply in the backward-bending portion is
A. Negative.
B. Greater than 1.
C. Zero.
D. Positive but less than 1.
Answer: A
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One problem with the concept of utilitarianism is that
A) there is a cost to transferring income from the rich to the poor. B) there are increasing marginal costs. C) there are decreasing marginal benefits. D) markets cannot adjust to income redistribution.
Our measurement of output per worker is called:
A. productivity. B. production growth rate. C. nominal output. D. None of these is true.
Which of the following best describes the difference(s) between a model and a theory?
a. A theory is a more abstract representation, while a model is more applied or empirical representation. b. A model is a more abstract representation, while a theory is more applied or empirical representation. c. Theories are used to test models. d. Models have been proven, but theories are still being investigated.
Ben quit his job as an economics professor to become a golf professional. He gave up his salary ($40,000 . and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings (profit) were $45,000 . Ben's economic profits were
a. $45,000. b. $5,000. c. $2,000. d. zero.