The effort curve is
A. S-shaped, because a small increase in the real wage will increase work effort more at an intermediate wage than at a low wage or at a high wage.
B. negatively sloped, because of diminishing marginal returns to labor.
C. horizontal, because work effort is independent of the real wage.
D. positively sloped, because of the law of increasing cost.
Answer: A
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According to this Application, lower oil prices may affect
A) aggregate supply. B) aggregate demand. C) both aggregate demand and aggregate supply D) neither aggregate demand and aggregate supply
Until the United States Civil War, The Unites States had a
A) gold-based monetary standard. B) silver-based monetary standard. C) bimetallic monetary standard consisting of silver and gold. D) bimetallic monetary standard consisting of copper and silver. E) bimetallic monetary standard consisting of copper and gold.
An implicit cost is
a. any cost a firm cannot avoid in the short run b. any expenditure a firm makes c. an opportunity cost d. accurately measured in accounting statements e. ignored by economists
To what does the "GDP gap" refer?
a. The difference between real and nominal GDP. b. The difference between this year's real GDP and last year's GDP. c. The difference between "full-employment" real GDP and actual real GDP. d. The difference between real GDP in the prior trough and real GDP in a current trough of the business cycle.