The market supply of labor curve is:
A. upward sloping.
B. upward sloping if the income effect dominates and downward sloping if the substitution effect dominates.
C. downward sloping if the income effect dominates and upward sloping if the substitution effect dominates.
D. perfectly inelastic.
Answer: A
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A major difference between the transactions demand for money and the precautionary demand is that the
A) transactions demand is for emergencies while the precautionary demand is for every day expenditures. B) transactions demand involves expected expenditures while the precautionary demand involves unexpected expenditures. C) transactions demand means that people are foregoing interest but they are not foregoing interest in the precautionary demand. D) transactions demand leads to the purchase of assets while the precautionary demand does not.
The existence of a shortage
A) means resources are being allocated efficiently. B) is impossible in a market economy. C) pushes the price u
In the long-run equilibrium, both the perfectly competitive firm and the monopolistically competitive firm produce the output at which MR=MC and charge a price equal to the average total cost of production
Indicate whether the statement is true or false
Bond prices and interest rates are inversely related
Indicate whether the statement is true or false