A permanent increase in the real wage rate has a ________ income effect on labor supply than a temporary increase in the real wage, so labor supply is ________ with a permanent wage increase than for a temporary wage increase
A) larger; more
B) larger; less
C) smaller; more
D) smaller; less
B
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The consumer equilibrium condition for two goods is achieved by equating the:
a. marginal utility of one to the price of the other for the last dollar spent on each good. b. prices of both goods for the last dollar spent on each good. c. marginal utilities of both goods for the last dollar spent on each good. d. ratios of marginal utility to the price of both goods for the last dollar spent on each good.
The monopolistic competition market structure is characterized by:
a. few firms and similar products. b. many firms and differentiated products. c. many firms and a homogeneous product. d. few firms and a homogeneous product.
When national income in other nations decreases, aggregate demand in our economy ________.
A. decreases because our imports will increase B. decreases because our exports will decrease C. increases because our imports will decrease D. increases because our exports will increase
Economists often refer to risk-free ventures as
A. break-even propositions. B. efficient market outcomes. C. those with no opportunity costs. D. profit opportunities.