If Donald receives a pay raise and the income effect outweighs the price effect on his labor supply decisions, he will work:
A. more hours.
B. less hours.
C. the same amount.
D. less hours initially but eventually work more.
B. less hours.
You might also like to view...
The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate falls from $24 per worker to $12 per worker, the quantity of labor hired ________ and the new number of workers employed is ________
A) increases; 2 B) decreases; 2 C) increases; 5 D) increase; 3
All of the following make the demand for labor more elastic EXCEPT
A) greater elasticity of demand for the final product. B) the longer the time period under consideration. C) the smaller the proportion of total costs accounted for by labor. D) the easier it is to substitute another input for labor.
Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?
a. One neighbor doesn't mow his lawn. b. One neighbor doesn't paint her house. c. One neighbor comes home on his noisy motorcycle late at night. d. All of the above are correct.
M2 is comprised of
A) small-denomination time deposits + savings deposits + money market accounts. B) small-denomination time deposits + credit cards + money market accounts + gold deposits. C) M1 + small-denomination time deposits + savings deposits + retail money market mutual funds. D) M1 + small denomination time deposits + credit cards + money market accounts.