The income and substitution effects of a change in the wage rate
a. always work in the same direction
b. always work in opposite directions
c. work in opposite directions only if the change is a decrease
d. work in the same direction only if the change is an increase
e. work in the same direction only if the change is a decrease
B
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The cross elasticity of demand for butter and margarine is likely to be
A) positive because they are substitutes. B) positive because they are complements. C) negative because they are substitutes. D) negative because they are complements. E) positive because they are normal goods.
Refer to Figure 7-4. With insurance and a third-party payer system, what is the amount of the deadweight loss?
A) $0 B) $1,500 C) $3,000 D) $9,500
How did the international monetary system influenced macroeconomic policy-making and performance during the gold standard era (1870-1914)?
What will be an ideal response?
In the national income accounts, investment includes all of the following EXCEPT:
a. stock market purchases. b. inventories. c. purchases of equipment. d. new home sales.