For a Giffin good, the income effect is
A. less than the substitution effect.
B. the same as the substitution effect.
C. greater than the substitution effect.
D. in the same direction of the substitution effect.
Answer: C
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A trade deficit occurs when:
a. a country imposes a price floor on the good in which it has a comparative advantage. b. a country's imports exceed its exports. c. a country imposes a price ceiling on the good in which it has a comparative advantage. d. a country's exports exceed its imports. e. the domestic product market is in disequilibrium.
Medicaid provides cash to the poor so that they may purchase medicine and doctors' services.
Answer the following statement true (T) or false (F)
The maximum amount Jameson would be willing to pay for a cupcake, less the price he actually pays, is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
Compared with a monopolist, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.