Which of the following describes an individual’s labor supply curve when the desire for more wage-related income is stronger than the desire for more free time?
a. U-shaped
b. backward bending
c. upward sloping
d. downward sloping
c. upward sloping
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The Federal Reserve System first began operations in:
A. 1865. B. 1914. C. 1789. D. 1934
Which of the following is true of the demand curve faced by a monopolist?
a. A monopolist's demand curve is infinitely elastic b. A monopolist's demand curve is more elastic than a competitive firm's demand curve. c. A monopolist faces a relatively inelastic demand curve. d. A monopolist's demand curve coincides with its marginal revenue curve. e. A monopolist faces a positively sloped demand curve.
A production possibilities curve has a downward slope because
a. increased production of one good always reduces the additional profit of production. b. decreased production of one good is associated with lower profit from that good. c. economists have a negative view of life and human nature. d. increased production of one good always reduces production of the other. e. increased production of one good necessarily causes production of other goods to increase.
Given the basic rule of thumb for the relationship among inflation, productivity and nominal wage increases, if wages rise by 5 percent and productivity increases 3 percent, one would predict inflation to be:
A. 2 percent. B. 1 percent. C. 0 percent. D. ?1 percent.