iVAT Chapter 17 Part 1

A  negative elastic supplies of labor.

B  elastic supplies of labor.

C  inelastic supplies of labor.

D  unit-elastic supplies of labor.

A  for a town should equal the elasticity of labor supply for a state.

B  for a town is not related to the elasticity of labor supply for a state.

C  should be greater for a town than for a state because people are more likely to consider work in a neighboring town than in another state.

D  should be greater for a state than for a town because people can travel more easily between states than between towns.

A  an increase in wages will lead to an increase in the quantity of labor supplied.

B  people have not yet reached their target income.

C  the income effect dominates the substitution effect on that portion of the supply curve.

D  the substitution effect dominates the income effect on that portion of the supply curve.

A  the income effect dominates the substitution effect.

B  a wage increase will lead to a decrease in the quantity of labor supplied.

C  eventually it will become backward bending.

D  the substitution effect dominates the income effect.

A  if workers decide to decrease the amount of hours worked if wages rise. This is due to the fact that some workers have a target level of income.

B  if the amount of hours worked increases if wages rise.

C  if workers decide to increase the amount of hours worked if wages rise. This is due to the fact that some workers don’t have a target level of income.

D  if workers decide to decrease the amount of leisure hours consumed. This is due to the fact that some workers have a target level of income.

A  when wages rise, the quantity demanded of leisure decreases, and workers increase the quantity of labor supplied.

B  when wages rise, the quantity demanded of leisure increases, and workers decrease the quantity of labor supplied.

C  when wages rise, the quantity demanded of leisure increases, and workers decide to increase the amount of hours worked.

D  when wages decrease, the quantity demanded of leisure increases, and workers increase the quantity of labor supplied.

A  when wages rise, the quantity demanded of leisure declines, and workers increase the quantity of labor supplied.

B  when wages rise, the quantity demanded of leisure increases, and workers decrease the quantity of labor supplied.

C  when workers decrease their quantity of labor supplied.

D  when wages decline, the quantity demanded of leisure declines, and workers increase the quantity of labor supplied.

A  the quantity of labor supplied always declines.

B  the opportunity cost of an hour of leisure declines.

C  neither the opportunity cost of an hour of leisure nor the quantity of labor supplied is likely to change.

D  the opportunity cost of an hour of leisure increases.

A  increases as wages get higher.

B  decreases as wages get higher.

C  has nothing to do with wages.

D  remains unchanged as wages get higher.

A  FALSE

B  TRUE