Sadie works at a factory for $15 an hour and typically works 40 hours a week. Sadie gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at $20 an hour. Her response:
A. tells us the price effect outweighed the income effect of her pay raise.
B. implies her labor-supply curve is upward sloping.
C. is typically what is observed.
D. All of these statements are true.
D. All of these statements are true.
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When a country has a negative current account, that country is
A) borrowing from the rest of the world. B) lending to the rest of the world. C) running a government budget surplus. D) None of the above is correct.
As firms enter a perfectly competitive market, the price
A) falls and the existing firms' economic profits do not change. B) rises and the existing firms' economic profits decrease. C) falls and the existing firms' economic profits decrease. D) falls and the existing firms' economic losses do not change.