An increase in nonlabor income leads to
a. a fall in the quantity of labor supplied and in consumption.
b. a fall in the quantity of labor supplied but an increase in consumption.
c. an increase in the productivity of labor.
d. a fall in the wage rate.
b. a fall in the quantity of labor supplied but an increase in consumption.
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When a company's stock is owned by thousands of individuals,
a. management will be very independent. b. management will be lacking. c. individuals will band together to socialize the firm. d. management will be prevented by government from taking any risks.
If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation rate is 3 percent
a. True b. False Indicate whether the statement is true or false
Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.
The _______ rate is the interest rate at which the Fed lends ______ to commercial banks.
A. federal funds rate; deposits B. federal funds rate; reserves C. discount rate; deposits D. discount rate; reserves