If there is an decrease in government purchases along with a decrease in the marginal tax rate on labor income, then:
a. the income effect would be toward a decrease in labor supply.
b. the substitution effect would be towards an decrease in labor supply.
c. the overall effect on labor supply is negative.
d. all of the above.
Ans: a. the income effect would be toward a decrease in labor supply.
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Answer the following statements true (T) or false (F)
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This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were an autarky, consumers would get area ________ in consumer surplus:
A. ABCDE. B. ABC. C. A. D. ABCDEFG.
In the U.S. health care market, the uninsured typically receive health care for:
A. emergencies, but not for preventative care. B. preventative care, but not for emergencies. C. both emergencies and preventative care. D. neither emergencies nor preventative care.
If a new casino comes to a city that already has one, which economic impact has little to no "local substitution" offsets to consider?
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