The income effect of a wage increase is observed when
A) the higher wage income causes workers to take more leisure and work less.
B) the higher wage income causes workers to take less leisure and work more.
C) leisure's higher opportunity cost causes workers to take less leisure and work more.
D) leisure's higher opportunity cost causes workers to take more leisure and work less.
A
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The world's economies can be divided into four main categories according to their annual per-capita income levels. Which one of the following is NOT one of the categories?
A) low-income B) upper middle-income C) high-income D) lower middle-income E) middle-income
Which of the following statements is true of members of an organization?
a. They are either principals or subordinates. b. Agents are closely monitored by principals at all times. c. Each member generates information for the use of others in the organization. d. Decision-makers decide on the basis of the information they generate themselves.
In which of the following situations should a firm increase its efforts to abate pollution?
A. The marginal benefit of abatement is less than its marginal cost. B. The marginal benefit of abatement is greater than its marginal cost. C. The marginal benefit of abatement is equal to its marginal cost. D. None of these
Which of the following will not cause aggregate private spending to decrease?
A) a reduction in expected future real interest rates B) a reduction in government spending C) an increase in future taxes D) all of the above E) none of the above