Which of the following statements is true?

Group of answer choices

Leisure is an inferiorgood.

Leisure is a normal good.

All other things unchanged, an increase in income will decrease the demand for leisure.

The demand for leisure is perfectly inelastic.

Each of the following conditions, except one, must be satisfied in a perfectly competitive labor market. Which is the exception?

Group of answer choices

There are a large number of buyers of labor services.

Wages are the sole source of household income.

There are no barriers to entering the market.

There are a large number of sellers of labor services.

To say that the demand for labor is a derived demand means that

Group of answer choices

changes in the demand for labor lead to changes in the demand for the product produced by labor

the supply of labor rises when the demand for labor falls

the demand for labor depends upon the demand for the product produced by labor

the quantity of labor is derived by the real wage rate

As applied to labor demand, the marginal approach to profit

Group of answer choices

says that a firm should increase employment if doing so adds more to revenue than it adds to cost

requires setting marginal revenue equal to the wage rate

requires setting marginal cost equal to the wage rate

is irrelevant

If the MFCL > MRPL, the firm should hire more labor.

Group of answer choices

True

False

An increase in the participation rate of women in the U.S. labor force

Group of answer choices

has shifter the supply curve of labor to the left.

resulted in a faster increase in wages.

has increased the demand for labor.

has shifted the supply curve of labor to the right.

The presence of diminishing marginal returns to labor leads to decreasing marginal revenue product of labor and a downward-sloping demand for labor curve.

Group of answer choices

True

False

Americans visiting Europe would prefer an exchange rate of $1.40 =1 euro rather than$1.20 =1 euro.

Group of answer choices

True

False

A protectionist policy generally enhances free trade.

Group of answer choices

True

False

According to the principle of comparative advantage, a nation should specialize in producing those products which

Group of answer choices

other nations are unable to produce

are hardest to protect through tradebarriers

it can produce at the lower opportunity cost than its trading partner

use the scarcest resources