In the above table, saving is positive when real disposable income is greater than
A. $100.
B. $300.
C. $500.
D. zero.
Answer: C
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Point out the main differences in job conditions and worker characteristics between the urban formal and informal sectors
What will be an ideal response?
A long-run expansion in capacity
A. Moves the economy to a point closer to its existing production possibilities curve. B. Shifts the production possibilities curve rightward. C. Moves the economy upward to the left along its existing production possibilities curve. D. Shifts the production possibilities curve leftward.
Where does the money for investment in physical capital come from? It largely comes from:
A. donation by foreign countries. B. government subsidies. C. the savings of ordinary households. D. the reinvestment of funds from businesses.
In general, the labor supply curve
A) is perfectly elastic at the equilibrium wage rate. B) is vertical at the equilibrium wage rate. C) slopes upward because as the wage rises the opportunity cost of leisure increases. D) slopes downward because firms will hire fewer workers at higher wages.