How would each of the following events affect Cheryl Shirker's supply of labor?
(a) Cheryl's firm announces a reorganization plan, in which she will get a big promotion and raise in six months.
(b) Cheryl's speculative investment in plutonium futures pays off big, netting her a profit of $300 thousand.
(c) Cheryl's father, who had planned to leave her a large bequest, must spend all his wealth on medical bills after a prolonged illness.
(a) The higher future real wage reduces current labor supply.
(b) Higher wealth reduces labor supply.
(c) Lower wealth increases labor supply.
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A perfectly competitive firm in a competitive labor market will hire more labor whenever
A) its average revenue product of labor exceeds the wage rate. B) the wage rate exceeds its average revenue product of labor. C) its value of marginal product of labor exceeds the wage rate. D) the wage rate exceeds its value of marginal product of labor.
Someone who values a lottery at less than the expected value is
a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries
A firm could be engaged in successful predatory pricing if: a. It charged prices greater than the average variable cost of production. b. It did not drive rivals out of the market
c. It did not raise its prices after its predatory price cutting. d. None of the above is true.
Which of the following is correct?
a. Labor force = number of employed. b. Labor force = population - number of unemployed. c. Unemployment Rate = number of unemployed (number of employed + number of unemployed) 100. d. Unemployment Rate = number of unemployed adult population 100.