The backward bending supply curve for labor is
a. not valid for individuals
b. valid only for aggregate labor markets
c. the result of purchasing power effects that outweigh the relative price changes for leisure
d. has to do with lack of firm interest in high-cost labor
e. describes a relationship between population and labor quantities
C
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The capture theory of regulation states that _____
a. regulators act in the best interests of regulators b. regulators act in the best interests of politicians c. regulators act in the best interests of the general public d. regulators act in the best interests of the regulated
If a one percent increase in the population leads to a five percent increase in the quantity sold, an economist would claim
A) the good is elastic with respect to population. B) the good is inelastic with respect to population. C) the good is a fad. D) consumers are misinformed about the quality of the product.
If a change passes the cost-benefit test, then
A) it is a Pareto improvement. B) it may be a Pareto improvement. C) it is not a Pareto improvement. D) total surplus is maximized.
The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash were:
A. effective in restoring aggregate supply to its pre-crisis level, but still left the economy with sluggish aggregate demand. B. ineffective in restoring aggregate supply to its pre-crisis level, and output remained far below potential. C. effective in restoring aggregate supply to its pre-crisis level, but left the economy facing severely increasing inflation. D. ineffective in restoring aggregate supply to its pre-crisis level, but output increased due to increased consumer confidence boosting aggregate demand.