Which of the following best explains why the elasticity of supply of labor for an individual with a Cobb-Douglas utility function (for consumption and leisure) is zero?
a. Income and substitution effects are precisely offsetting.
b. The elasticity of substitution of leisure for consumption is zero.
c. Leisure is an inferior good.
d. Consumption is subject to diminishing marginal utility.
a
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The M2 measure of money consists of the sum of:
A. currency, checking and savings deposits. B. M1, savings deposits, small time deposits, and money market mutual funds. C. savings deposits, small time deposits, and money market mutual funds. D. currency, checking and savings deposits, and small time deposits.
The quantity of newspapers sold will decline if
A. newsprint becomes more expensive. B. the printers’ union makes wage concessions. C. prices are reduced. D. magazine prices rise.
____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm
a. Incremental price b. Marginal price c. Full-cost price d. Transfer price e. none of the above
If prices and wages adjusted rapidly and producers could quickly distinguish the difference between a change in the price level and a change in the relative price of their products, then an increase in the money supply growth rate would have at most a very short-lived affect on unemployment
a. True b. False Indicate whether the statement is true or false