Related to the Economics in Practice on page 131: Uber drivers can choose to drive as many or as few hours as they desire, and most drivers have another job and drive for Uber as a way to supplement their income. Assuming leisure is a normal good, if Uber increased the wages it paid its drivers then the income effect would result in drivers working ________ and buying ________ leisure.
A. more; less
B. more; more
C. less; more
D. less; less
Answer: C
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When the exchange rate between the U.S. dollar and the euro changes from 1.00 euro per dollar to 1.30 euros per dollar, then the
A) euro has depreciated against the euro. B) U.S. dollar has depreciated against the euro. C) U.S. dollar has depreciated against the dollar. D) euro has appreciated against the dollar. E) U.S. dollar has appreciated against the euro.
If unemployment equals the natural unemployment rate, then there
A) is zero unemployment. B) is only frictional or structural unemployment. C) are no job openings existing at the time. D) is less than full employment.
The public interest theory of government regulation is optimistic
Indicate whether the statement is true or false
Natural resources are:
A. not considered scarce because no one pays for them. B. rarely used in production. C. included in the category of resources called land. D. available in unlimited quantities.