Luke was earning $60 per hour and working 40 hours per week. Luke's wage rose to $70 per hour, and as a result, he now works 50 hours per week
What can you conclude from this information about the substitution and income effects of a wage increase for Luke?
We can conclude that Luke's substitution effect is greater than his income effect, since the increase in wages led to an overall increase in the number of hours worked.
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Guiseppe Vibrato was so sick of his job that he quit, and now spends his days at the tavern, saying he never wants to work again. Guiseppe is
A) a discouraged worker. B) a discouraged drinker. C) unemployed. D) neither employed nor unemployed.
If someone experiences diminishing marginal utility when eating a restaurant meal, he or she should not eat the restaurant meal
Indicate whether the statement is true or false
Competitive markets are characterized by
a. a small number of buyers and sellers. b. unique products. c. the interdependence of firms. d. free entry and exit by firms.
An increase in the price of nonlabor inputs
A) shifts the AD curve leftward. B) shifts the SRAS curve leftward. C) is the same thing as a beneficial supply shock. D) shifts the AD curve rightward. E) shifts the SRAS curve rightward.