Which of the following statements is true?
A) The slope of the labor supply curve depends only on the income effect of a wage rate change.
B) The income effect and the substitution effect of a wage rate change work in the same direction.
C) The income effect and the substitution effect of a wage rate change work in opposite directions.
D) The slope of the labor supply curve depends only on the substitution effect of a wage rate change.
C
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Advocates of the New Growth Theory claim that they have improved upon the neoclassical model by
a. focusing on the rate of investment, rather than the amount of investment b. adding population growth to the list of key variables c. assuming that knowledge obtained in one country would be easily available to those in othercountries d. making technological change a part of the model, rather than something brought in from theoutside e. none of the above
A firm is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70 . What would you advise this firm to do?
a. Shut down. b. Increase output. c. Stay at its current output. d. Decrease output. e. Decrease price.
When an airline reduces its fares, other airlines typically match the action. But when an airline increases its fare, other airlines do not follow suit. Which oligopoly model cartel, price leadership, or kinked demand best fits the airline industry as described? Justify your choice and explain why the other models are less appropriate
John Maynard Keynes was a very famous economist from
A) the United States. B) England. C) Germany. D) Ireland.