Leisure is an inferior good for Assel. In response to an increase in the wage rate, she will
A) supply fewer hours of labor.
B) supply more hours of labor.
C) enjoy more hours of leisure.
D) None of the above.
B
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If a prospective employee is not offered his/her reservation utility or reservation wage, then he/she will
A. tend to look for another job or withdraw from the labor market. B. seek a larger fringe benefit package. C. accept the job because a wage below the reservation utility is very attractive. D. use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time.
Imposing tariffs in cases of dumping
A) is allowed under the WTO agreement. B) is not allowed under the WTO agreement. C) is not addressed by the WTO agreement. D) has never occurred, even though it is allowed under the WTO agreement.
Policymakers who wish to discourage businesses that pollute by taxing them:
A. should place a tax on consumers instead of the producers in order to increase the burden on sellers. B. should place a tax on producers instead of the consumers in order to increase the burden on sellers. C. forget that some of the tax burden will be shared by consumers. D. forget that businesses will pass the entire tax onto consumers of their products.
An upward-sloping supply curve of labor implies that
a. any quantity of workers can be hired at the same wage rate b. a higher wage rate is required to attract more laborers c. there is an excess supply of labor in the labor market d. the total labor cost curve is horizontal e. the marginal physical product curve of labor must also be upward sloping