As wages rise, the substitution effect induces households to
A) choose leisure rather than supplying labor in the labor market.
B) choose supplying labor in the labor market rather than engage in leisure.
C) reduce the opportunity cost of leisure.
D) reduce the economic rent from leisure.
B
Economics
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When the economy is at full employment, the
A) natural unemployment rate is equal to 0 percent. B) natural unemployment rate equals the unemployment rate. C) natural unemployment rate is equal to 10 percent. D) unemployment rate is equal to 0 percent. E) frictional unemployment rate is equal to 0 percent.
Economics
Suppose Q = KaLb, if a + b > 1 the isoquants will be
a. upward sloping. b. progressively closer together at higher quantities. c. progressively further apart at higher quantities. d. equally spaced.
Economics