The Average Work Week in the United States Has Declined

question 80

Multiple Choice

The average work week in the United States has declined to fewer than 40 hours even though wage rates have been increasing.The best explanation of this phenomenon is that

• A)the labor supply curve shifted to the right
• B)the labor demand curve shifted to the right
• C)the income effect of rising wages outweighed the substitution effect
• D)the income effect of rising wages could not outweigh the substitution effect
• E)none of the above

Recognize the relationship between product standardization and market competition.

Understand the characteristics and implications of purely competitive market settings for firms.

Understand the concept of pure competition in market structures.

Identify the characteristics and implications of being a price taker in a purely competitive market.

---

Definitions:

Demand Increases

A situation where the quantity of a good or service that consumers are willing and able to purchase at a given price rises.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to significantly influence market prices.

Market Supply

The total amount of a product that sellers are willing and able to sell across all markets at a given price level over a specific time period.

Market Demand

The cumulative volume of a good or service that all buyers in a market are prepared and able to buy at a range of prices.