An increase in nonlabor income leads to ________ in consumption and ________ in labor supply.
A. a decrease; an increase
B. an increase; a decrease
C. an increase; an increase
D. a decrease; a decrease
Answer: B
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In the short run, who tends to benefit from a decrease in the exchange rate?
A) domestic producers B) owners of domestic-currency assets C) domestic consumers D) foreign producers
The two types of market structures that are imperfectly competitive are:
A. perfect competition and monopolistic competition. B. monopolistic competition and oligopoly. C. oligopoly and monopoly. D. monopoly and perfect competition.
The supply of workers in a particular occupation could be relatively large if:
A. training costs are low. B. job features are undesirable. C. there are few people with the required skills. D. there are artificial barriers to enter that profession.
Assume the Backwoods Shoe Company hires three inputs: labor (L), capital (K), and land (A) to produce shoes (X). Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs?
A. MPL/PL = MPK/PK = MPA/PA B. MPL = MPK = MPA = 1/PX C. PL = PK = PA D. MPL = MPK = MPA