If Sam receives a pay cut and the income effect outweighs the price effect on his labor supply decision, he will:
A. work the same hours no matter what.
B. quit and not work at all.
C. work less hours.
D. work more hours.
Answer: D
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When a nation removes restrictions on imported products that nation will
A. experience lower prices and consume higher quantities. B. experience higher prices and consume lower quantities. C. experience higher prices and consume higher quantities. D. experience lower prices and consume lower quantities.
When individuals use ________ about an economic variable to make a decision, expectations are rational
A) only historical information B) all available information C) only information garnered in the private sector D) only information announced by the Fed
The aggregate supply of labor is the
A) total amount of time a person works over his or her lifetime. B) total amount of time a person spends in the labor force over his or her lifetime. C) unemployment rate. D) sum of the labor supplied by everyone in the economy.
The number of firms in a perfectly competitive industry is not fixed in the long run.
Answer the following statement true (T) or false (F)