The income effect of a wage rate increase should lead to
A. a decrease in the quantity of labor supplied and a decrease in leisure.
B. an increase in the quantity of labor supplied and an increase in leisure.
C. an increase in the quantity of labor supplied and a decrease in leisure.
D. a decrease in quantity of labor supplied and an increase in leisure.
Answer: D
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If the firm produces one more unit of output and total cost rises from $1,000 to $1,050, marginal cost is
a. $1,050. b. $1,000. c. $2,050. d. $50.
If the price level increases, the money demand curve will
a. shift leftward b. become steeper c. remain in the same position; however, there will be movement upward along the curve d. shift rightward e. remain in the same position; however, there will be movement downward along the curve
Which will not, ceteris paribus, cause the demand curve for good A to shift?
a. A change in the price of C, a substitute b. A change in the price of A c. A change in the price of B, a complement d. An increase in average income
List the four possible responses to the Social Security financing gap.
What will be an ideal response?