If working in the paid labor market requires a commute, then Group of answer choices a)...

If working in the paid labor market requires a commute, then

Group of answer choices

a) the budget constraint shifts downward.

b) All of these answers are correct.

c) individuals with wres>w will work more hours in the labor market.

d) the substitution effect resulting from the commute dominates for workers participating in the labor market.

e) the budget constraint pivots to a lower effective wage.

Solutions

Expert Solution

Q. If working in the paid labor market requires a commute, then:

Ans) b) All of these answers are correct.

The budget constraint will shift downward resulting in a lower effective wage. The individuals with wage reservation > wage will work more hours in the labor market and substitution effect resulting from the commute usually dominates for workers participating in the labour market.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

A revocation of acceptance: Group of answer choices requires no notification. is effective when the buyer...

A revocation of acceptance: Group of answer choices requires no notification. is effective when the buyer notifies the seller. is a breach of contract. is accomplished only by a return of the goods 2. If there is a written contract, a disclaimer of the implied warranty of merchantability must be conspicuous. Group of answer choices True False 3 Where the contract is for identified goods and the goods are destroyed before the risk of loss has passed to the buyer,...

For a restaurant: Group of answer choices labor and food would be variable factors of production....

For a restaurant: Group of answer choices labor and food would be variable factors of production. a building would be a fixed factor of production in the short run. fire insurance on a building would be a fixed factor of production. A and B are correct.

Which of the following statements is TRUE? Group of answer choices a.A market is in equilibrium...

Which of the following statements is TRUE? Group of answer choices a.A market is in equilibrium when the number of buyers equals to the number of sellers b.In a free market system, markets (composed of large numbers of buyers and sellers) eventually reach equilibrium price and quantity c.The concept of equilibrium requires that all individuals have an equal amount of income d.The free market system creates a result that is both efficient and fair to everyone

Which of the following is a relatively direct determinant of market structure? Group of answer choices...

Which of the following is a relatively direct determinant of market structure? Group of answer choices economies of scale the possible influence of medium-sized firms the possible influence of the smallest firms the influence of small firms

In a competitive market, buyers and sellers Group of answer choices have the power to set...

In a competitive market, buyers and sellers Group of answer choices have the power to set prices are not subject to a demand curve or a supply curve are buying and selling goods that are identical lack perfect information

To contract the economy with open market operation, the federal reserve will Group of answer choices...

To contract the economy with open market operation, the federal reserve will Group of answer choices increase reserve requirements increase discount rates buy T-bonds from banks sell T-bonds to banks

How is Medicare Part A financed? Group of answer choices payroll taxes paid only by employers...

How is Medicare Part A financed? Group of answer choices payroll taxes paid only by employers out-of-pocket payroll taxes paid by both employers and employees congressional fiat

5 The carbon assimilation (Calvin cycle) stage of photosynthesis requires: Group of answer choices ATP, NADPH...

5 The carbon assimilation (Calvin cycle) stage of photosynthesis requires: Group of answer choices ATP, NADPH and CO2 ATP, NAD, and hydrogen ATP, NADPH, and oxygen ATP, hydrogen, and oxygen 6 Which of the following would you expect to find predominating in the plasma membrane of a unicellular eukaryotic organism thriving in glacier ice? Group of answer choices 20 carbon long fatty acids with 1 double bond 16 carbon long fatty acids with 3 double bonds 20 carbon long saturated...

Which of the following is a capital market security? Group of answer choices Fed funds Commercial...

Which of the following is a capital market security? Group of answer choices Fed funds Commercial paper Treasury bills Repo Preferred stock

34. Which of the following describes a monopoly? Group of answer choices any market in which...

34. Which of the following describes a monopoly? Group of answer choices any market in which the demand curve to the firm is downsloping. a standardized product being produced by many firms. a single firm producing a product for which there are no close substitutes. a large number of firms producing a differentiated product. 35. Which of the following is true for the marginal revenue curve of a monopolist? Group of answer choices is a straight, upsloping curve. rises at...

Subjects