The nonprofit or not-for-profit sector consists of organizations that A) intend to earn a profit. B) are always inefficient. C) are primarily concerned with the welfare of their own employees. D) typically pursue social or public interest objectives. ANSWER D
Date: September 9th, 2020
In China, firms owned by the government are known as A) state-owned enterprises (SOEs). B) government enterprises. C) corporations. D) government owned partnerships. ANSWER A
Date: September 9th, 2020
Since 1999, the number of small state-owned enterprises (SOEs) in China has A) decreased, but the large SOEs continue to hold a large proportion of industrialized assets. B) increased, but large SOEs has decreased. C) decreased along with the large SOEs. D) remained unchanged. ANSWER A
Date: September 9th, 2020
What might explain a professional baseball player having lower production the year after signing a multimillion dollar contract? A) the substitution effect B) the endowment effect C) bounded rationality D) the income effect ANSWER D
Date: September 9th, 2020
Inflation over time necessarily makes consumers worse off. Indicate whether the statement is true or false ANSWER False. Wages also increase over time. Workers may earn the price of some goods in less time than in the past.
Date: September 9th, 2020
If a person supplies more hours of labor in response to a wage increase, then A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) the income effect equals the substitution effect. D) the person is not maximizing utility. ANSWER A
Date: September 9th, 2020
A backward-bending labor supply curve implies that A) the substitution effect dominates the income effect at higher wage rates but not at lower wage rates. B) the substitution effect dominates the income effect at lower wage rates but not at higher wage rates. C) leisure is an inferior good. D) workers are irrational. ANSWER […]
Date: September 9th, 2020
If Bobby thinks that leisure is an inferior good, then his labor supply curve A) is backward bending. B) is always negatively sloped. C) is always positively sloped. D) does not exist. ANSWER C
Date: September 9th, 2020
Suppose the typical consumer only purchases food and clothing, and her utility can be expressed as U=F*C. Currently, food costs $5 per unit and clothing costs $2 per unit. Her income is $70. If the price of food increases to $6, compare the resulting Laspeyres price index with a true cost of living index. What […]
Date: September 9th, 2020
Newspaper accounts of the U.S. labor market often point out that many people are working more hours than their parents did. What might explain this phenomenon? A) the substitution effect B) the endowment effect C) bounded rationality D) the income effect ANSWER A
Date: September 9th, 2020
