The "invisible hand" influences market behavior through trade
a. True
b. False
Indicate whether the statement is true or false
False
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Answer the following statement(s) true (T) or false (F)
1. The slope of the budget line depends on the wage rate and the amount of human capital the worker has accumulated. 2. An increase in a worker's marginal productivity can cause an increase in the worker's non-labor income. 3. Human capital tends to increase over the course of a person's life. 4. Because people work more efficiently in periods of high productivity, they tend to work fewer hours because it does not take as long to complete assignments. 5. Unlike regular indifference curve analysis, that involving the labor consumption trade-off only includes income effects (not substitution effects) because labor only generates income.
If the government removes a binding price ceiling from a market, then the price received by sellers will
a. decrease, and the quantity sold in the market will decrease. b. decrease, and the quantity sold in the market will increase. c. decrease, and the quantity sold in the market will increase. d. increase, and the quantity sold in the market will increase.
A good is considered by economists to be inferior if
a. consumers buy less when price rises b. consumers buy less when income rises c. consumers buy less when price falls d. consumers buy more when income rises e. better quality goods exist
Which of the following pholitical philosophies would support redistribution of income that makes society fully egalitarian?
a. Liberals, because they believe in the maximin criterion. b. Libertarians, because they believe in evaluating the process by which economic outcomes arise. c. Utilitarians, because they believe in diminishing marginal utility. d. None of the above would support completely egalitarian redistribution of income.