1.Some individuals work less when wage rate goes up because:

Group of answer choices

a) income tax rates decline as a person's income goes up

b) their income effect exceeds their substitution effect

c) they prefer to substitute more consumption for less leisure

d) they are not making a rational economic decision

2.An assessment of policy decisions in Oregon concerning the housing market concluded that they will:

Group of answer choices

a) Lead to higher rents for government subsidized housing

b) Cause "inclusionary zoning" to offset the impacts of "urban growth boundaries"

c) Lead to future shortages due to less construction

d) Increase the supply of low income housing

3.Given the following information, assume both markets are perfectly competitive, and the chart represents the production function for a firm that makes paper clips.

Market for Paper ClipsMarket for Labor

Qd= 4000 - 400PQd= 300 - 5PL

Qs= -1000 + 600PQs= -150 + 5PL

LaborCapitalOutput

010 ---

110 10

210 30

310 40

410 49

510 57

What wage (PL) will this firm pay its labor?

Group of answer choices

a) 150 per period

b) 45 per period

c) 30 per period

d) 10 per period