An inferior good is one that consumers buy in smaller quantities when incomes rise
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in the minimum wage to $15 per hour would lead to
A) an increase in search activity for many workers. B) a decrease in search activity for many workers. C) a decrease in unemployment. D) no change in unemployment. E) no change in employment.
To the extent that customers can resell products to each other, the effectiveness of a price discrimination strategy will be undermined
Indicate whether the statement is true or false
The first fundamental theorem of welfare economics states that
A) under certain conditions, a competitive equilibrium is Pareto optimal. B) a competitive equilibrium is always Pareto optimal. C) under certain conditions, a Pareto optimum is a competitive equilibrium. D) a Pareto optimum is always a competitive equilibrium.
Suppose that the nominal money supply equals $2 billion and nominal GDP is $16 billion. Then, according to the equation of exchange, the velocity of money equals 8
a. True b. False Indicate whether the statement is true or false