Answer:
Option A, “the substitution effect dominates the income effect” is correct.
Explanation:
If the real wage increases then the opportunity cost for leisure will also increase. Therefore, an increase in real wages and a rise in the opportunity cost of leisure induce labor to supply more workforce or labor force. This is known as the substitution effect. Moreover, when this substitution effect is greater than the income effect then the supply curve for labor is upward sloping.
Answer:
The kernel of an atom is neutral
Answer:
maturity
Explanation:
The four stages of a product's life cycle are:
- introduction: the new product is released in the market (it is born), sales are slow and advertisement costs are high.
- growth: sales volume increases, customers know about the product, and competing firms are starting to launch their own versions of the product.
- maturity: sales growth stops, which means that total sales reached a zenith, companies fight to keep their share of the market and generally launch different versions of the product to keep customers interested.
- decline: sales volume starts to decrease as the product becomes obsolete. Finally the product will stop being produced (the product dies).
Answer:
B. $36 billion
Explanation:
Since we were asked to calculate Wages. We can't use the Expenditure method of GDP. Method to be used would be the Income approach. In doing so, the values of export and import would be excluded. Therefore,
Given that
GDP = 65 billion
Profits = 7 billion
Rent = 7 billion
Interest payments = 15 billion
Recall that,
GDP = sum of income earned (profits, wages, rents, interests)
Thus,
Wages = GDP - Profits + rents + interests
= 65 - (15 + 7 + 7)
= 65 - 29
= 36 billion
Hence, wages during 2011 was $36 BILLION.
Note: Parameters used are based on the information in the question. It is important to note that income earned when using income approach could be more than the 4 stated parameters of wages, rent, profits and interests.
Market because it promotes competition which in return lowers prices and increases quality
