The reservation wage likely increases when
A. the price of consumption increases.
B. nonlabor income increases.
C. the wage increases.
D. the price level (of consumption and wages) increases.
E. one is a discouraged worker.
Answer: B
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An unexpected fall in Capacity Utilization should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
A sharp increase in gasoline prices will cause the supply curve for trucking services to shift to the right
a. True b. False Indicate whether the statement is true or false
Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be able to work three hours once he arrives in Atlanta, whereas traveling by plane will enable him to work eight hours. His expected income from each hour of work in Atlanta is $30 . If Maurice is a rational decision maker, he will fly if and only if the price differential
(air cost minus driving cost) is less than a. $30. b. $90. c. $150. d. $240.
Which of the following is not a component of aggregate demand?
a. Consumption b. Investment spending c. Government spending d. Real interest rate