Homework Answers
Answer = less likely, more
If the wage increase is temporary, workers would want to gain as much income as possible till the wages fall back.
Workers are more likely to work more. It emans they will substitute labor for leisure. Income effect is less likely to dominate substitution effect.
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If a wage increase is temporary, the income effect is _ _likely to dominate the substition...
Draw a graph showing the substitution and income effect of a wage increase . assume that...
Draw a graph showing the substitution and income effect of a wage increase . assume that at the current wage level ,individuals substitution effect is stronger than the income effect. (label the graphic completely )
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Labor Economics 1. In the leisure-income model, the wage constraint shows a. the points that maximize...
Labor Economics
1. In the leisure-income model, the wage constraint shows a. the points that maximize a worker's utility b. all points that are equally preferred c. the wage rates that affect work decisions d. the available combinations of leisure and income 2. The slope of a wage constraint reflects the: a. rate at which a person is willing to substitute leisure for income c. income effect b. price of leisure d. substitution effect 3. When a worker maximizes her...
Labor Economics, multiple choice questions 1. In the leisure-income model, the wage constraint shows a. the...
Labor Economics, multiple choice questions
1. In the leisure-income model, the wage constraint shows a. the points that maximize a worker's utility b. all points that are equally preferred c. the wage rates that affect work decisions d. the available combinations of leisure and income 2. The slope of a wage constraint reflects the: a. rate at which a person is willing to substitute leisure for income c. income effect b. price of leisure d. substitution effect 3. When a...
If wages increase, will a worker supply more labor? O A. Only if the income effect...
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45. An increase in the marginal income tax rate is likely to A. increase the quantity...
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Question 1 1 pts By 1 July 2008, more than 70 million American households had received...
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27. If consumers' income increases by one dollar and consumers consume both food and non-food, a....
27. If consumers' income increases by one dollar and consumers consume both food and non-food, a. spending on food consumption will always increase. b. spending on food consumption will increase but by less than one dollar if both food and non- food are normal goods. c. spending on food consumption will increase only if non-food is inferior good. d. spending on food consumption will increase only if non-food is normal good. 28. A reduction in the price of good A...
14. In the Cobweb model, if wages for plumbers are relatively high now, and it takes 6 months to ...
14. In the Cobweb model, if wages for plumbers are relatively high now, and it takes 6 months to train as a licensed plumber a) We would expect an increase in supply of plumbers 6 months from now b) We would expect an increase in demand for plumbers 6 months from now o) We would expect increases in supply and demand for plumbers 6 months from now ) Supply of plumbers and demand for plumbers would not change s. In...
hi can you plzz answer all the true and false question in detail 9. A decrease in a wage taxes causes the opportu...
hi can you plzz answer all the true and false question in
detail
9. A decrease in a wage taxes causes the opportunity cost of leisure to increase. a. True b. False 10 In the typical leisure/consumption model, in the price of the composite consumption good. a. True increase in the wage is equivalent to a decrease an b. False 11. An increase in the interest rate is an increase in the opportunity cost of consuming in the future. a....
Labor Economics
1. In the leisure-income model, the wage constraint shows a. the points that maximize a worker's utility b. all points that are equally preferred c. the wage rates that affect work decisions d. the available combinations of leisure and income 2. The slope of a wage constraint reflects the: a. rate at which a person is willing to substitute leisure for income c. income effect b. price of leisure d. substitution effect 3. When a worker maximizes her...
Labor Economics, multiple choice questions
1. In the leisure-income model, the wage constraint shows a. the points that maximize a worker's utility b. all points that are equally preferred c. the wage rates that affect work decisions d. the available combinations of leisure and income 2. The slope of a wage constraint reflects the: a. rate at which a person is willing to substitute leisure for income c. income effect b. price of leisure d. substitution effect 3. When a...
If wages increase, will a worker supply more labor? O A. Only if the income effect is larger than the substitution effect. OB. Yes because the substitution effect causes workers to supply a larger quantity of labor. O C. Only if the substitution effect is larger than the income effect. O D. Yes because the substitution and income effects both cause workers to supply a larger quantity of labor. O E. No because purchasing power has increased and leisure is...
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Question 1 1 pts By 1 July 2008, more than 70 million American households had received tax rebates of $950 on average, as a part of a temporary economic stirpulus policy. According to Friedman's permanent income model (and holding all other things equal), aggregate consumption in 2008 O should have increased by approximately the amount of the tax rebate O should have increased by more than the tax rebate should have increased by significantly less than the amount of the...
27. If consumers' income increases by one dollar and consumers consume both food and non-food, a. spending on food consumption will always increase. b. spending on food consumption will increase but by less than one dollar if both food and non- food are normal goods. c. spending on food consumption will increase only if non-food is inferior good. d. spending on food consumption will increase only if non-food is normal good. 28. A reduction in the price of good A...
14. In the Cobweb model, if wages for plumbers are relatively high now, and it takes 6 months to train as a licensed plumber a) We would expect an increase in supply of plumbers 6 months from now b) We would expect an increase in demand for plumbers 6 months from now o) We would expect increases in supply and demand for plumbers 6 months from now ) Supply of plumbers and demand for plumbers would not change s. In...
hi can you plzz answer all the true and false question in
detail
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