In a model of consumption and leisure, a drop in the wage will cause workers to work less if tastes are quasilinear in leisure.

Answer the following statement true (T) or false (F)


True

Rationale:

The substitution effect points in the direction of more leisure (i.e. less work), and the wealth effect is zero on the leisure axis.

Economics

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Of the following countries, which is the best example of a mixed economy?

A) Mexico B) Cuba C) North Korea D) China

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In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the cost of the CPI basket in 2013?

A) $430 B) $335 C) $320 D) $540

Economics

The elasticity formula solves the units problem because percentages are unaffected by the units of measure

a. True b. False Indicate whether the statement is true or false

Economics

Figure 4-16


Assume that Figure 4-16 shows the supply of steak. An increase in the price of pork will change the supply from

a.
S1 to S2.

b.
S2 to S1.

c.
S2 to S3.

d.
S1 to S3.

Economics