Wes works as a delivery man and can work as many hours as he likes for $12 an hour. He typically works 40 hours a week. Recently, his pay has been cut, and Wes decides to work:
A. more hours, because the price effect dominates his labor supply decision.
B. less hours, because the income effect dominates his labor supply decision.
C. more hours, because the income effect dominates his labor supply decision.
D. the same amount, because the price effect dominates his labor supply decision.
C. more hours, because the income effect dominates his labor supply decision.
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Why is the market for loanable funds not in equilibrium?
What will be an ideal response?
The reason that the prisoner's dilemma presents a dilemma is that:
A. each player has an incentive to play his or her dominant strategy, but when both choose the dominant strategy each player has a lower payoff than if they both had chosen the dominated strategy. B. each player has an incentive to play his or her dominated strategy, but when both choose the dominated strategy each player has a lower payoff than if they both had chosen the dominant strategy. C. neither player has a comparative advantage, so neither can infer what the other player will choose. D. the market cannot be in equilibrium because the players do not have dominant strategies.
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Fill in the blank(s) with correct word