If the income effect of a change in the wage dominates the substitution effect, then workers will want to work more when the wage increases.
Answer the following statement true (T) or false (F)
False
You might also like to view...
During an economic downturn, Keynes argued that firms would have ________ to increase spending because ________.
A. no incentive; interest rates would be too high. B. no incentive; they already had enough capacity to meet demand. C. a strong incentive; interest rates would be too high. D. a strong incentive; they wouldn't have enough capacity to meet demand.
The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is ________ the slope of the line between points B and C
A) greater than B) equal to C) less than D) unrelated to E) not comparable to
The output effect of a change in the wage rate on a firm's demand for labor input will be greater
a. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output. b. the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output. c. the larger the share of labor costs in total costs and the higher the quantity demanded. d. the smaller the possibilities of substituting capital for labor.
If the cross-price elasticity of demand between two goods is positive, then
a. consumers are being irrational b. supply is elastic c. the goods may have similar uses d. the goods may go well together in consumption e. one good must be a necessity