Leisure being an inferior good is necessary but not sufficient for labor supply to slope up.
Answer the following statement true (T) or false (F)
False
Rationale: Leisure being an inferior good is sufficient but not necessary -- because leisure can also be a normal good with labor supply sloping up.
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A good salesperson can sell $200,000 worth of goods, while a poor one can sell only a smaller amount worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $20,000 or a 20% commission. Assume risk-neutral salespersons and no opportunistic behavior. Given that the firm wants to distinguish a prospective good salesperson from a poor one, what should be the sales amount of a poor salesperson? A) more than $150,000 B) less than $100,000 C) more than $100,000 D) $100,000
Stephan prefers practicing his keyboard everyday instead of writing articles for the local newspaper, despite the fact that the newspaper will pay him $10 for every 100 words he writes. This implies that: a. his labor supply curve is a horizontal straight line. b. he has a high opportunity cost of leisure
c. his labor supply curve is negatively sloped. d. he places a high value on time spent in leisure.