Worker surplus can be measured as an area on the market labor supply curve if worker tastes are quasilinear in leisure.
Answer the following statement true (T) or false (F)
True
Rationale: In this case, the compensated labor supply curve is the same as the uncompensated labor supply curve.
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Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, Cindy's preference for mayor is
A) Oliver Cousins. B) George Glass. C) Cindy is indifferent between the two candidates. D) Cindy definitely does not like either candidate.
John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000 and there is a 10 percent chance of losing it all. John is
A) willing to pay any price for insurance. B) willing to pay no more than $2,000 for insurance. C) willing to pay no more than $3,000 for insurance. D) willing to pay $5,000 for insurance.
High marginal tax rates, such as those instituted during the Great Depression, will
a. increase the incentive of people to earn. b. lead to a proportional increase in tax revenue and a reduction in the size of the budget deficit. c. cause people to work, earn, and invest less than would be the case if marginal tax rates were lower. d. attract workers from other countries where tax rates are lower.
An increase in the price of labor used to produce good A will lead to
A) an increase in the market clearing price of good A. B) an increase in the supply of good A. C) a decrease in the demand for good A. D) an increase in the demand for good A.