As bookings for his catering business began to increase, David raised his rates. Then he decided to take on even more bookings than he had before. Which of the following describes his labor supply curve?
a. U-shaped
b. upward sloping
c. downward sloping
d. backward bending
b. upward sloping
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Being a monopolist in the market
a. guarantees a positive short-run profit. b. guarantees a positive long-run profit. c. does not contradict with the rule that profit is maximized where MR = MC. d. All of the above are correct.
Normally, a firm's borrowing cost is the expected real interest rate, which takes expected inflation into account. With price stickiness, however, the firm will consider only:
a. expected inflation. b. expected wages. c. the nominal rate of interest. d. the expected appreciation of the asset.
Which of the following does not explain why the Glass-Steagall regulations lost their effectiveness?
A. Over time, nonbank financial firms were able to borrow directly from the public, rather than having to borrow from commercial banks. B. With the advent of new financial instruments, regulated banks lost business to unregulated institutions, and credit began to flow through unregulated systems. C. As regulations became too successful, people wanted to eliminate these regulations in order to pursue the magic of the free market. D. The Federal Reserve created regulations that ran counter to what the government was trying to do.
The Argentinian crisis of 2001 was brought about by:
A. exchange rate crisis. B. debt crisis. C. excessive loss of national resources. D. None of these statements is true.