The income effect in the work-leisure model induces a person to work less in response to higher wages, which tends to make the labor-supply curve slope backward
a. True
b. False
Indicate whether the statement is true or false
True
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A firm that is maximizing its profit
A) is economically efficient and technologically efficient. B) is economically efficient but might be technologically inefficient. C) is technologically efficient but might be economically inefficient. D) might be economically inefficient and/or technologically inefficient.
Tara runs the only one-hour photo lab for 300 miles around, in an isolated west Texas town. Her lab technician explains to Tara that she is not producing the level of output that would minimize her average total costs. The lab technician tells her that
she should lower her price in order to increase her number of customers. Tara rejects her technician's analysis. Why doesn't she take her technician's advice?
All of the following statements are consistent with the kinked demand curve theory except
A. the theory depicts cutthroat competition. B. according to the theory, firms are reluctant to raise or lower price. C. according to the theory, if a firm raised its prices its competitors also would raise their prices. D. the theory is associated with "sticky prices."
The equation of exchange always holds because
A. the quantity of money is determined by the amount of spending on goods and services. B. the quantity of money dictates the size of nominal GDP, since money is a social usage. C. MV measures total spending on GDP and PY also measures of total spending on GDP. D. the number of times money is spent to obtain goods and services measures total spending on GDP.