Refer to Figure 8.3. Holding other variables constant, if the economy is originally in equilibrium at the intersection of D2 and S2 and households increase their preference for leisure over labor, the economy would move to the new equilibrium point

An increase in the employment tax should have a relatively small effect on output if the labor supply curve

A) is perfectly horizontal. B) has a positive slope. C) is relatively flat. D) is relatively stee

Refer to Figure 4-1. If the market price is $2.00, what is the consumer surplus on the first burrito?

A) $0.50 B) $1.00 C) $2.00 D) $7.50