Why is the market supply curve of labor positively sloped though individual supply curves are backward-bending beyond a certain wage rate?
a. People tend to work less when wage rate increases.
b. Every individual laborer has equal trade offs between labor and leisure.
c. People tend to substitute labor for leisure.
d. People work more for the fear of losing their jobs and becoming unemployed.
e. All the individual supply curves do not bend backward at one particular wage rate.
e
You might also like to view...
A monopolistically competitive firm will
A) always produce at the minimum efficient scale of production. B) have some control over its price because its product is differentiated. C) produce an output level that is productively and allocatively efficient. D) charge the same price as its competitors do.
In the Interest Parity Condition, Rt - R t = ( - Et)/Et + xt, where Rt - R t is the interest rate differential and ( - Et)/Et is the expected change in the exchange rate, what does xt stand for if it potentially is a market efficient difference
between the two? A) market inefficiency B) risk premium C) forecast error D) tracking error E) excessive volatility
Fiscal policy involves the manipulation of ________
A) U.S. interest rates B) wages and prices C) federal government spending and tax revenues D) the supply of money
The correlation between X and Y
A) cannot be negative since variances are always positive. B) is the covariance squared. C) can be calculated by dividing the covariance between X and Y by the product of the two standard deviations. D) is given by corr(X, Y) = .