The classical economists believed that
a. labor supply is upward sloping because the income effect is greater than the substitution effect.
b. labor supply is upward sloping because the substitution effect is greater than the income effect.
c. labor supply is downward sloping because the income effect is greater than the substitution effect.
d. in equilibrium, the marginal product of labor must exceed the real wage.
e. both b and d.
B
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In the Governing Council, the decision of what policy to implement is made by
A) majority vote of the Executive Board members. B) majority vote of the heads of the National Banks. C) consensus. D) majority vote of all members of the Governing Council.
In economics, the term "marginal" usually refers to
a. a small change in an economic variable b. a low-quality product or resource c. an unimportant and irrelevant economic variable d. an all-or-nothing economic decision e. a footnote or minor point