Determine whether True or False with appropriate reason.
1) A firms labor demand curve will be more elastic if product demand is more elastic.
2) The earned income tax credit has been shown to increase labor force participation.
3) monopsonists are defined by their ability to set prices in the product market.
4) an increase in the demand for wine, hold all else constant, will lead to a higher number of winemakers employed but a lower market-clearing wage in the winemaker industry.
5) market labor demand is typically more elastic in absolute value than market labor supply.
6) a person who has a substitution effect that dominates his income effect will increase hours worked when an income tax is imposed.
7) a firm's labor demand will be more elastic in the long run if it has other inputs that could be easily substituted for labor.
8) a wage rate below the market-clearing wage will create an excess supply of labor.
9) a person with indifference curves that are convex to the origin will enjoy a greater marginal utility of leisure for his 19th hour of leisure than the marginal utility of his 11th hour of leisure.
10) living wage laws are narrower in coverage than minimum wage laws.