The classical economists believed that
a. labor supply is upward sloping because the income effect is greater than the substitution effect.
b. labor supply is upward sloping because the substitution effect is greater than the income effect.
c. labor supply is downward sloping because the income effect is greater than the substitution effect.
d. in equilibrium, the marginal product of labor must exceed the real wage.
e. both b and d.
B
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Refer to the table above. Identify the correct statement
A) Country X has an absolute advantage in the production of both the goods. B) Country Y has a comparative advantage in the production of both goods. C) Country X has an absolute advantage only in the production of wheat. D) Country Y has an absolute advantage in the production of both goods.
The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that
a. only the tariff results in a higher domestic price b. only the quota decreases the amount of goods imported c. the decrease in producer surplus is smaller with the quota d. under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government e. under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government
Connie can clean windows in large office buildings at a cost of $1 per window. The market price for window-cleaning services is $3 per window. If Connie cleans 100 windows, her producer surplus is $100
a. True b. False Indicate whether the statement is true or false
Will and Grace have adjoining unfenced back yards and each has just adopted a new puppy. Will values a fence between their yards at $250 and Grace values a fence between their yards at $200. The cost of building the fence is $300, which will be split equally if they both agree to build the fence. Therefore, their payoff matrix is as follows. If Will decides to build the fence, then Grace will earn a higher payoff by ________, and if Will decides to not build the fence, then Grace will earn a higher payoff by ________.
A. not helping to build the fence; also not building the fence B. helping to build the fence; also not building the fence C. not helping to build the fence; building the fence D. helping to build the fence; building the fence