practice_final_multiple_choice

practice_final_multiple_choice - 1) A consumer may increase...

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1) A consumer may increase her saving by A) working more hours and consuming more goods in the present period. B) working more hours and consuming fewer goods in the present period. C) working fewer hours and consuming more goods in the present period. D) working fewer hours and consuming fewer goods in the present period. Answer:B 2) The assumption that current-period labor supply is positively related to the current-period real wage is justi f ed as long as the A) income e f ect dominates the substitution e f ect in the short run. B) income e f ect dominates the substitution e f ect in the long run. C) substitution e f ect dominates the income e f ectintheshortrun . D) substitution e f ect dominates the income e f ect in the long run. Answer: C 3) An increase in lifetime wealth is likely to A) increase current labor supply and increase current consumption demand. B) increase current labor supply and decrease current consumption demand. C) decrease current labor supply and increase current consumption demand. D) decrease current labor supply and decrease current consumption demand. Answer: C 4) Next period’s capital is equal to current-period investment A) plus the amount of current capital left over after depreciation.
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practice_final_multiple_choice - 1) A consumer may increase...

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