The demand curve for leisure will slope upward if leisure is a ______ good and the income effect of a wage change is relatively _______.
A. normal; large
B. inferior; large
C. normal; small
D. inferior; small
A. normal; large
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According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is
A) $9.9 trillion. B) $8 trillion. C) $10.1 trillion. D) $9.8 trillion. E) $10.2 trillion.
Rate of return regulation is designed to allow a natural monopoly to
A) make an economic profit. B) make zero economic profit. C) underestimate its average cost. D) compete with any firm entering the market. E) make zero normal profit.
Figure 5-15
Hal initially consumes the combination marked as A in Figure 5-15. After his income increases, Hal consumes combination B. We can conclude that Hal views
A. X as an inferior good and Y as a noninferior good. B. X as a noninferior good and Y as an inferior good. C. both X and Y as noninferior goods. D. both X and Y as inferior goods.
In a centrally planned economy, the government decides how economic resources will be allocated
Indicate whether the statement is true or false