Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. Since the effective hourly wage is higher on busy days, choosing to stop working when a particular income goal is reached is:
A. consistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher.
B. consistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher.
C. inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is higher when the wage is higher.
D. inconsistent with an upward-sloping labor supply curve since the quantity of labor supplied is lower when the wage is higher.
Answer: D
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The owner of the local "Fatty Foods" chain of restaurants is thinking about retiring. He has two options: he can hire salaried managers for his stores or franchise them to local entrepreneurs. If the owner believes that there are high costs to monitoring the stores after he retires, what should he do?
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a. True b. False Indicate whether the statement is true or false
Which of the following would cause the poverty threshold income level for a given family to increase by 20 percent from one year to another?
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