The market supply of labor curve is:
A. upward sloping.
B. upward sloping if the income effect dominates and downward sloping if the substitution effect dominates.
C. downward sloping if the income effect dominates and upward sloping if the substitution effect dominates.
D. perfectly inelastic.
Answer: A
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Which of the following is true of labor unions? a. They allow employees to participate in internal decision making. b. They can increase the amount of labor demanded by firms. c. They help to reduce wage differentials among co-workers
d. They can raise the wage above the market equilibrium level.
Refer to the graph below which shows the import demand and export supply curves for two nations that produce a certain product. Lines 6 and 8 apply to one nation and represent, respectively:
A. Import demand and export supply
B. Export supply and import demand
C. Domestic supply and domestic demand
D. Domestic demand and domestic supply