Identify two reasons why an individual's labor supply curve is typically upward-sloping.
What will be an ideal response?
(1) As the amount of labor that a worker supplies increases, the marginal utility of the worker's leisure time increases. As a result, the worker will require higher wages to compensate for giving up increasingly valuable leisure time. (2) For most workers, the marginal utility of additional income decreases. When this happens, workers will not be willing to work more hours unless wages increase.
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Behavioral economics under uncertainty documents that
A) people's behavior often differs from what standard expected utility theory predicts. B) people's behavior can change with their circumstances. C) people might put considerable weight on certain outcomes. D) All of the above.
Which of the following is a fixed cost for a store?
a) short-term workers b) rent c) advertising d) inventory
A market demand schedule for a product indicates that:
a. As the product's price falls, consumers buy less of the good b. There is a direct relationship between price and quantity demanded c. As a product's price falls, consumers buy more of the product. d. There is an upward-sloping (direct) relationship between price and quantity demanded
A credence good is a product
A) with qualities that consumers lack the expertise to assess without assistance. B) that emphasizes the features of its product. C) with characteristics that enable an individual to evaluate the product's quality in advance of a purchase. D) that an individual must consume before the quality can be established.