The labor supply could decrease when wages increase only if the:
A. price effect outweighs the income effect.
B. income effect outweighs the price effect.
C. substitution effect outweighs the income effect.
D. price effect outweighs the substitution effect.
B. income effect outweighs the price effect.
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Since 1980, the percentage of part-time workers who are part time for economic reasons
A) has steadily decreased. B) has steadily increased. C) at first increased, then generally decreased. D) generally increased in recessions and decreased in expansions. E) has remained approximately constant.
You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20 percent. This transaction, by itself, will directly reduce
A) the quantity of money by $1,600. B) deposits by $1,600. C) the quantity of money by $2,000. D) deposits by $2,000.
Which of the following statements is true?
A) Household production is counted in GDP as it amounts to real production. B) GDP growth distributes income equally to people in the economy. C) GDP accounting rules do not adjust for production that pollutes the economy. D) A decrease in the crime rate increases GDP as people will spend more on security.
The tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth is called
A) persistence. B) comovement. C) periodicity. D) recurrence.