If wages decrease and workers choose to work more hours or more shifts, their behavior is evidence of
a. the substitution effect.
b. the income effect.
c. rational expectations.
d. rational ignorance.
b
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Vertical contracts that aim to decrease retailer prices typically
a. Benefit the consumer and the manufacturer but hurt the retailer b. Benefit the manufacturer and retailer but hurt the consumer c. Benefit the retailer and consumer but hurt the manufacturer d. Benefit the manufacturer, retailer and consumer
Unlike nonrenewable resources, the timing of extraction of renewable resources are independent of the market rate of interest
a. True b. False Indicate whether the statement is true or false
In a negative income tax program, the higher the income earned, the higher will be the family's after-tax income
Indicate whether the statement is true or false
Suppose the consumer price index (CPI) for Year X is 130. This means the average price of goods and services is:
A. currently $130. B. 130 percent more in Year X than in the base year. C. 130 percent more in the base year than in Year X. D. priced at 30 percent more in Year X than in the base year.