With respect to labor supply, the substitution effect means a
A) person increases his or her hours of labor in response to a higher wage rate.
B) person decreases his or her hours of labor in response to a higher wage rate.
C) person substitutes high paying work for low paying work.
D) firm substitutes capital for labor.
A
You might also like to view...
Which of the following firms is most likely to spend on innovation?
A) A perfectly competitive firm B) A monopoly with absolutely no competition C) A firm that is the only controller of a key resource necessary for production D) A firm that enjoys some monopolistic power, but faces strong competition from its rivals
In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?
A) Country A B) Country B C) Country C D) It is impossible to answer the question without more information.
In general, economists place all factors of production into which three categories?
A. Land, labor, and capital B. Technology, land, and capital C. Land, labor, and technology D. Technology, labor, and capital
The DeBeers Diamond Company, which owns most of the South African diamond production, has market power over the diamond trade. This market power was obtained through: a. illegal means
b. control of a scarce resource. c. patent protection. d. government licensing.