The substitution effect of wages states that a decreased wage rate
A. Will shift the labor supply curve rightward.
B. Will lead to a movement up along the existing supply curve.
C. Encourages people to consume less leisure.
D. Encourages people to work less hours.
Answer: D
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Which of the following statements with respect to the monopolist is FALSE?
A) A monopolist can make higher profits if it can price discriminate. B) A monopoly tends to result in a lower quantity being sold than perfect competition does. C) Monopoly is a situation in which a single firm dominates. D) A monopoly arises in a situation with few barriers to entry into the marketplace.
The possibility of multiple-peaked preferences cannot be ruled out.
A. True B. False C. Uncertain
When a monopolist's marginal profit is negative, then it follows that
A. MR = MC. B. MR > MC. C. MR < MC. D. MR > ATC.