The supply of labor curve has a ________ slope because as the real wage rate rises, ________
A) positive; the opportunity cost of leisure rises
B) negative; households work more hours
C) positive; the opportunity cost of leisure falls
D) positive; firms offer more jobs
E) negative; firms hire fewer workers
A
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What is rent seeking and how is it related to regulatory capture?
What will be an ideal response?
The price elasticity of demand shows
A) the relationship between market price and household income. B) the proportionate amount by which the quantity demanded changes in response to a proportionate change in price. C) the quantity demanded at a given price. D) the proportionate amount by which the price changes in response to a proportionate change in quantity demanded.
Perfectly competitive firms and monopolists are different because
a. in perfect competition MC = P, while a monopolist produces where P > MC. b. in perfect competition MC = P, while a monopolist produces where MC > P. c. in perfect competition P > MC, while a monopolist produces where MC = P. d. in perfect competition MC > P, while a monopolist produces where MC = P.
If price falls, what happens to the quantity demanded for a product?
a. It increases. b. It decreases. c. It does not change. d. Uncertain--economic theory has no answer to this question.