In a model of consumption and leisure, a drop in the wage will cause workers to work more if tastes are quasilinear in consumption.
Answer the following statement true (T) or false (F)
False
Rationale: If tastes are quasilinear in consumption, then leisure is a normal good --- and how workers respond to changing wages will therefore depend on the relative size of substitution and wealth effects on the leisure axis.
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Explain how elections in countries with democratic political institutions can place controls on corruption
What will be an ideal response?
When a bank needs to increase its reserves, it will
a. call in all its loans b. stop paying interest on its saving accounts c. borrow money from the government d. call in a loan or reduce new lending e. increase the number of loans it makes
As output expands beyond the break-even point, the vertical distance between the AVC and ATC will
A. get larger. B. remain constant. C. get smaller.
Which of the following stresses the inability of the government to improve short-run market outcomes?
A. Monetary policy B. New classical economics C. Supply-side policy D. Fiscal policy