The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to
a. work less than before.
b. work more than before.
c. possibly work more or less than before.
d. work more with a higher level of consumption.
a
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Monopolistic competitive firms in the long run earn:
a. positive economic profits. b. zero pure economic profits. c. negative economic profits. d. none of these.
A country that has had success with export-led growth policy is:
A. North Korea. B. South Korea. C. Russia. D. Liberia.
In economics, transaction costs refer to the
a. time, effort, and other resources needed to search out and negotiate an exchange. b. dollar cost or price of the item traded. c. cost an economy suffers when it allows specialization according to comparative advantage. d. amount by which the price of an item increases due to the presence of a middleman.
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her
home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce. Ziva's accountant would calculate the total cost for the day of farming to equal a. $25. b. $130. c. $300. d. $380.