The income effect in the work-leisure model induces a person to work less in response to higher wages, which tends to make the labor-supply curve slope backward
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements regarding the marginal product curve is FALSE?
A) Increasing marginal returns occur only when the total product increases as the number of workers increases. B) Increasing marginal returns is due to greater efficiency from specialization in the production process. C) The law of diminishing returns applies in the short run. D) Along the marginal product curve, increasing marginal returns occur first and then diminishing marginal returns.
Cyclical unemployment is the result of
A) the search process of matching workers with jobs. B) a slowdown in the economy. C) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. D) the ups and downs in inflation.