What is the added worker effect?
A. A secondary worker enters the labor force when the wage rate is high.
B. A secondary worker enters the labor force when he or she no longer must allocate time to household production.
C. A secondary worker enters the labor force when his or her consumption of goods exceeds his or her nonlabor income.
D. A secondary worker enters the labor force when his or her household productivity increases.
E. A secondary worker enters the labor force when the main worker in the household has lost his or her job or has experienced a wage cut.
Answer: E
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If product Y is an inferior good, a decrease in consumer incomes will
A. shift the demand curve for product Y to the left. B. make buyers want to buy less of product Y. C. shift the demand curve for product Y to the right. D. not affect the sales of product Y.
We would expect unions to have a more difficult time negotiating higher wages for their members when
A) labor represents a small portion of total costs. B) the product produced makes up a small portion of families' budgets. C) the product produced has several close substitutes. D) there are not good substitutes for labor in the production process.
The most important reason for the increasing prominence of the corporation was:
a. protection from creditors. b. that some businesses required more capital than one person or a few people could provide. c. the use of "double liability." d. None of the above
If fixed cost rises,
a. the profit maximizing level of output would decrease. b. the profit maximizing level of output would not change. c. marginal cost rises. d. variable cost falls.