Assume leisure is an inferior good instead of a normal good. The income effect of a wage increase will lead to a ________ demand for leisure and a ________ labor supply.
A. higher; lower
B. higher; higher
C. lower; lower
D. lower; higher
Answer: D
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The main determinant of elasticity of supply is the:
A. number of close substitutes for the product available to consumers. B. amount of time the producer has to adjust inputs in response to a price change. C. urgency of consumer wants for the product. D. number of uses for the product.
Demand is a schedule of
A. each possible price and the amount people will buy when their incomes change. B. how much of a good people will purchase at each income level. C. how much of a good people will purchase at each different possible price. D. how much of a good a person wants.
The concept of "global competitiveness"
A) is not practical because economic well-being is evaluated within each country. B) means that the economic well-being of each nation must be compared with nations with same size population. C) means that the economic well-being of each nation must be compared with nations on the same continent. D) means that the export-import ratio of each nation must be compared.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable. B. cannot be produced with the current state of technology. C. represents underallocation of resources. D. represents what the people want.