The equivalent variation is always less than the consumer's income
Indicate whether the statement is true or false
True . The amount a person will pay to prevent a price change (EV) cannot exceed their available income.
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According to the doctrine of liberalism, principles of justice are the result of
a. fair agreement and bargain. b. command-and-control policies. c. domination of the powerful by the weak. d. workers owning the factors of production.
Keynes explained that recessions and depressions occur because of
a. excess aggregate demand.
b. inadequate aggregate demand.
c. excess aggregate supply.
d. inadequate aggregate supply.
Which of the following is NOT an example of a financial intermediary?
A. a pension fund B. an insurance company C. the U.S. Treasury Department D. a credit union
Professor I.M. Dismal returns to campus in the fall to find that the bookstore is charging 10% more for the new economics textbooks he ordered this year compared to last year
On the basis of this information, and using the economic way of thinking, what can Professor Dismal clearly conclude? A) The economy has experienced a 10% inflation over the year. B) The economy has experienced a 10% deflation over the year. C) The economy has experienced a disinflation over the year. D) The economy has experienced a steady price level over the year. E) The bookstore is charging 10% more for the new textbooks he ordered this year compared to last year.