Which of the following helps to explain why the supply curve of labor is upward sloping?
A) The substitution effect of a price change makes a good more expensive relative to other goods.
B) The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping so is the labor supply curve.
C) As the wage rate rises, the income effect causes the quantity of labor supplied to increase.
D) As the wage rate rises, the opportunity cost of leisure rises.
D
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When the government uses a cap-and-trade approach in dealing with pollution, it
A) uses taxes in order to internalize the externalities caused by the pollution. B) imposes quantitative limits on the amount of pollution firms are allowed to generate. C) uses subsidies to encourage firms to use new technology that reduces pollution. D) distributes information to consumers and producers on how to reduce pollution.
The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?
A) A, B, and C B) B, C, and D C) A, C, and D D) C and D
Capital inflows that take the form of direct investment may be particularly beneficial if they bring new technologies, new management techniques, and new ideas to the host country
Indicate whether the statement is true or false
The "Asian miracle" refers to the:
A. fact that countries like Japan and South Korea have had consistent growth despite their failing industrial policies. B. high growth in countries like Japan and South Korea despite the absence of a democratic government. C. success countries like Japan, South Korea, and Taiwan have had with import substitution policy. D. success countries like Japan, South Korea, and Taiwan have had with export-led growth policy.