We assume an upward sloping supply curve because:
A. the income effect tends to dominate labor-supply decisions in the real world.
B. it makes better theoretical sense that the income effect would dominate.
C. the price effect tends to dominate labor-supply decisions in the real world.
D. it makes better theoretical sense that the price effect would dominate.
Answer: C
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The quantity of reserves held by a bank in addition to the legally required amounts is known as
a. actual reserves b. excess reserves c. the legal reserve requirement d. the potential money multiplier e. the monetary base
It presently costs 50 Canadian dollars for a lift ticket at Whistler Ski Resort in British Columbia. If the current value of the Canadian dollar is 0.68 U.S. dollars, how many U.S. dollars does it cost to ski at Whistler?
a. $16.00 b. $34.00 c. $73.50 d. $156.25
Currently, in the United States, you can expect the discount rate to be
a. used often to change the money supply. b. raised in periods of recession. c. fixed at the bank rate. d. adjusted to follow market rates of interest.
If two goods are considered complements and the price of one decreases then the other good's
A. supply curve will shift to the left. B. supply curve will shift to the right. C. demand curve will shift to the left. D. demand curve will shift to the right.