A demand curve is also a willingness-and-ability-to-pay curve
Indicate whether the statement is true or false
TRUE
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The income effect of a wage increase is observed when
A) the higher wage income causes workers to take more leisure and work less. B) the higher wage income causes workers to take less leisure and work more. C) leisure's higher opportunity cost causes workers to take less leisure and work more. D) leisure's higher opportunity cost causes workers to take more leisure and work less.
The change in the level of planned spending that results from a change in the price level is indicated by the movement of the economy along a given
a. aggregate expenditure curve. b. aggregate demand curve. c. aggregate supply curve. d. both aggregate expenditure curve and aggregate demand curve.
In which of the following situations is representative democracy most likely to lead to the adoption of an inefficient government program?
a. The program provides substantial benefits to a small interest group, and the costs are widespread among voters. b. Both the benefits and costs of the program are widespread among voters. c. The program is financed by a user charge that makes the individuals who benefit from the program pay for its cost. d. The program provides widespread benefits to all voters and imposes a significant cost on a small interest group.
Because the goods offered for sale in a competitive market are largely the same,
a. there will be few sellers in the market. b. there will be few buyers in the market. c. only a few buyers will have market power. d. sellers will have little reason to charge less than the going market price.