There is no income effect because the consumer’s income is unchanged

Between them the income and substitution effects cover the entire change in the quantity that the consumer demands

If the product is normal, the income effect works in the same direction as the substitution effect

If the product is inferior, the income effect works in the opposite direction to the substitution effect

The indifference curves slope downwards to the right because both income and leisure are desirable

The curves get flatter to the right because both income and leisure have diminishing marginal utility

The indifference curves furthest from the original represent the highest total utility

An increase in the wage rate shifts the earnings leisure line, with the new line being parallel to the initial line

The supply curves of individuals may slope backwards, and also the market supply curve for any given type of labour may well slope backwards

The supply curves of individuals may slope backwards, but the market supply curve for any given type of labour is most unlikely to slope backwards

The supply curves of individuals are most unlikely to slope backwards, but the market supply curve for any given type of labour may well slope backwards

The supply curves of individuals are most unlikely to slope backwards, and the market supply curve for any given type of labour is also most unlikely to slope backwards.

It is something that all firms actually do

It is something which economists believe that all firms actually do

It is what economists believe is the most common aim of firms

It means that no firms ever make losses

More than 99% of firms have fewer than 50 employees

Less than 1% of firms have 250 or more employees

Between them, firms with fewer than 50 employees account for under 50% of the total turnover (that is total sales) of all firms

Between them, firms with 250 or more employees account for under 50% of the total turnover of all firms