The supply of labor to one industry will decrease when
A) the price of leisure activities falls.
B) the income effect dominates the substitution effect.
C) the demand for labor falls in the industry.
D) workers receive better employment opportunities in other industries.
Answer: D
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Today, the average U.S. tariff is 4.6 percent of the value of imported goods, which is very low by historical standards
Indicate whether the statement is true or false
Dissatisfaction with public school education has led many parents to try home schooling for their children. If parents cut back on their jobs outside the home in order to spend time teaching their children at home, how will this affect GDP?
a. GDP will increase. b. Real GDP will increase and nominal GDP will decrease. c. Both real and nominal GDP will increase. d. GDP will decrease.
Exhibit 7-11 A firm's cost and marginal revenue curves
?
In Exhibit 7-11, when the price drops below $2, the profit-maximizing (or loss-minimizing) firm:
A. should shut down and produce zero. B. should produce output equal to 4. C. is making an economic profit of $8. D. should try to produce more output.
The question, "What is really more efficient?" could usefully be translated into the question:
A) "What is the best long-term solution?" B) "What will best promote social welfare?" C) "What will produce the most economic value?" D) "Who should have the right to decide?" E) "What will produce the most rapid rate of economic growth?"