If the average productivity of American firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see? (India's currency is the rupee.)
A) an increase in the value of the rupee relative to the dollar
B) a decrease in the quantity demanded of Indian products relative to American products
C) a decrease in the prices of Indian products
D) an increase in the quantity demanded of Indian products relative to American products
B
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Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day
What will be an ideal response?
Which of the following could explain why hockey players earn such high income?
a. All of the following are correct. b. Average careers are very short; the chances of being unemployed are greater than in many other jobs. c. The income effect encourages them to work more as the wage increases. d. Many people want to become hockey players. e. The threat of injury makes the job more exciting than other jobs.