The substitution effect of a decrease in the wage rate would lead most people to supply
A. less labor and demand less leisure.
B. less labor and demand more leisure.
C. more labor and demand less leisure.
D. more labor and demand more leisure.
Answer: B
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The labor force participation rate is defined as
A) the percentage of the working-age population that is unemployed. B) the percentage of the working-age population that is employed. C) the percentage of the labor force that is employed. D) the percentage of the labor force that is unemployed. E) the percentage of the working-age population in the labor force.
If the economy falls into a recession, automatic stabilizers will cause:
A. tax receipts to fall and government spending to rise. B. both tax receipts and government spending to fall. C. tax receipts to rise and government spending to fall. D. both tax receipts and government spending to rise.
In an unregulated competitive market, the presence of marginal external cost of a good or service results in overproduction
Indicate whether the statement is true or false
What is the present value of $575 in a one year if the current rate of interest is 4 percent?
A) $410.71 B) $552.88 C) $598 D) $805