The labor supply curve:
A. shows the relationship between the total quantity of labor supplied by all firms in the economy and the wage rate.
B. shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower.
C. has a negative slope.
D. All of these are true.
B. shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower.
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If velocity is growing by 2 percent per year and real output is growing 6 percent per year, according to the equation of exchange, in order to maintain stable prices, the money supply would have to: a. grow by 3 percent
b. grow by 4 percent. c. grow by 8 percent. d. grow by 12 percent.
The tendency of those who are insured to take more risks as a result is a problem of: a. free riding
b. moral hazard. c. adverse selection. d. positive externalities.
To maximize profits, a firm should expand production as long as it is making profits.
Answer the following statement true (T) or false (F)
In economics, a fixed cost is a cost that
A) is present only in the short run. B) goes up as the level of output goes up. C) goes down as the level of output goes up. D) does not vary with the level of output.