Hourly worker who currently earns

Assignment Help Business Economics

Reference no: EM131244546

Consider Mary, an hourly worker who currently earns $30,000 per year. If Mary's wage rate is increased by 50%:

a. the substitution effect will lead Mary to work more

b. the income effect will tell Mary to work more, assuming that leisure is a normal good.

c. the total effect must be an increase in hours worked

d. all of the above

e. none of the above

Reference no: EM131244546

Questions Cloud

Potential source of advantage over competitors : Come up with five examples of firms that have used imitation as a way of reducing the risk of entry. What aspects of risk was it meant to reduce? Was it successful? What aspects of the firm were not generated by imitation, made the firm unique, and w..

Cause shift in the supply of? gasoline : If the market for a product is broadly? defined, then. Which of the following will NOT cause a shift in the supply of? gasoline?

Blu-ray players are complements in consumption : LCD TVs and ?Blu-ray players are complements in consumption. Suppose the price of LCD TVs falls. How will this affect the market for? Blu-ray players?

Additional assumption of the heckscher-ohlin model : The Heckscher-Ohlin model assumes that there are two countries, each of which produces two goods (say manufactures and agriculture) using labor and capital. Which of the following is an additional assumption of the Heckscher-Ohlin model?

Hourly worker who currently earns : Consider Mary, an hourly worker who currently earns $30,000 per year. If Mary's wage rate is increased by 50%:

The absolute slope of a budget line is equal : With the quantity of good x measured on the horizontal axis and the quantity of good y measured on the vertical axis, the absolute slope of a budget line is equal to: If the composite good convention is adopted so that expenditure on all other goods ..

When resources are allocated to their highest valued : When resources are allocated to their highest valued use? __________ is achieved and when goods and services are produced at the lowest possible cost? _______ is achieved. If two goods are? substitutes, then their

Consider production possibilities frontier : Consider a production possibilities frontier? (PPF) that is concave? (bowed outward from the? origin). Such a PPF displays increasing opportunity? costs, meaning that the cost of producing additional units of both goods rises. What is the reason for ..

Article in the wall street? journal-unlike? airlines : According to an article in the Wall Street? Journal, unlike? airlines, even elite hotels? don't have sophisticated systems that can react quickly to changes in demand. Even if they? could, many hoteliers say people? don't respond that much to lower r..

User Account

All Pages