The effort curve is
A) horizontal, because work effort is independent of the real wage.
B) negatively sloped, because of diminishing marginal returns to labor.
C) positively sloped, because of the law of increasing cost.
D) S-shaped, because a small increase in the real wage will increase work effort more at an intermediate wage than at a low wage or at a high wage.
D
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As the dollar price of the euro increases
A) the demand for euros will increase. B) the price of French goods will fall for U.S. residents. C) French residents will purchase more U.S. goods. D) U. S. residents will increase their travel to France.
Is demand more elastic in the short run or the long run? Why?
What will be an ideal response?
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are in the given table, who will be happiest if the lab and library are voted on first?
A. Ernie
B. Fiona
C. David
D. All people would be equally happy.
If two investments are perfectly positively correlated:
A. there is no benefit from diversification. B. bets are perfectly hedged and risks are canceled out. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.