Question

Income is best defined by which of the following?

	A.	income adjusted for inflation
	B.	nominal income
	C.	the income remaining after bills have been paid
	D.	the amount that a person or firm earns over a particular period
	E.	income paid in dollars that are worthless

Which of the following could cause a leftward shift of the labor supply curve?

	A.	an increased preference for working in the labor market
	B.	an increase in the number of two-family households
	C.	an increased preference for enjoying leisure time
	D.	a trend toward less schooling and toward earlier entrance into the labor market
	E.	an increase in the retirement age

Which of the following is a major macroeconomic goal?

	A.	low prices
	B.	declining prices
	C.	pure competition
	D.	stable prices
	E.	high prices

Answer 1

1. Option D

Explanation:  In simple words, income is what one earns in a given period of time.

2. Option C

Explanation: When there is an increased preference for enjoying leisure time, workers supply less labor hours at each wage rate. So, the labor supply curve shifts left.

3. Option D

Explanation: In macroeconomics, the major target is to achieve stable price and stable economic growth rate.