For most low-wage earners
A) the substitution effect of a wage rate increase is likely to equal the income effect.
B) the opportunity cost of leisure is high.
C) the income effect of a wage rate increase is likely to be larger than the substitution effect.
D) the substitution effect of a wage rate increase is likely to be larger than the income effect.
D
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For a perfectly competitive firm, at profit maximization
A) production must occur where average cost is minimized. B) market price exceeds marginal cost. C) total revenue is maximized. D) marginal revenue equals marginal cost.
Jill Johnson owns a pizzeria. She currently produces 10,000 pizzas per month at a total cost of $500. If she produced one more pizza her total cost rises to $500.11. What does this tell us about Jill's marginal cost of producing pizzas?
A) The marginal cost of producing pizzas cannot be determined without more information. B) The marginal cost of producing pizzas is rising. C) The marginal cost of producing pizzas is constant. D) The marginal cost of producing pizzas is falling.
In an economy where firms in most industries are purely competitive firms, individual firms in each industry would produce ________ products and have a ________ share of industry output
A) differentiated; large B) differentiated; small C) standardized; large D) standardized; small
When private ownership rights are well-defined and enforced, owners of physical assets and resources
a. have no incentive to consider the desires of others. b. incur the opportunity cost of ignoring the wishes of others. c. are not responsible if the use of their assets impose harm on others. d. have little incentive to take care of their assets.