In order for a labor supply curve to be backward bending at high wages
A) workers must have an irrational response to wage increases.
B) leisure must be an inferior good.
C) the substitution effect of a wage increase must be greater than the income effect.
D) the income effect of a wage increase must be greater than the substitution effect.
D
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Solow's theory of economic growth concludes, "the possibility of steady growth would be a miraculous stroke of luck" because
A) the three "determinants," s, (Y/K) and n are caused by different unrelated behavior. B) s reflects temporal consumption preferences. C) d reflects unrelated depreciation. D) n reflects birth control decisions.
Under a gold standard, a country with a trade deficit should expect
A. gold to flow out of the country to other countries. B. gold to flow into the country from other countries. C. the value of its currency to appreciate. D. the value of its currency to depreciate.