Refer to Figure 17-3. In Panel A, at low wages (segment i)
A) labor suppliers demand more leisure as wages increase.
B) the substitution effect outweighs the income effect.
C) the income effect outweighs the substitution effect.
D) the substitution effect offsets the income effect.
B
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The wheat growing industry consists of very many farmers producing identical products. The market structure that best fits the wheat growing industry is probably
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
All of the following observations concerning the elasticity formula are true except
A. the changes with which it deals is measured as a percentage change. B. each of the percentage changes is calculated in terms of the average values. C. the calculation considers both positive and negative signs. D. each percentage change is taken as an “absolute value.”
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars SoldTrucks SoldLarry105Joe99Ralph312 Based on last month's data, Larry's opportunity cost of selling a truck is selling:
A. 10 cars. B. 1/2 of a car. C. 2 cars. D. 1 car.
When you use your own savings to start a business, you make a profit
A. after you earn an amount equal to the savings you used to start the business. B. only after you cover the opportunity cost of using your savings to start your business. C. after the first dollar you earn, because you borrowed no funds to start the business. D. only after you earn double the amount of money you invested.