An increase in wage rate, other things constant, shifts the aggregate supply curve downward
a. True
b. False
Indicate whether the statement is true or false
False
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The theory that regulation seeks an efficient use of resources is the
A) social interest theory. B) producer surplus theory. C) consumer surplus theory. D) capture theory. E) deadweight loss theory.
If a good has a negative income elasticity of demand, this indicates that the good is
A) normal. B) a substitute with another good. C) inferior. D) a complement with another good.
In order for a Pigovian tax to be effective, it must:
A. be imposed on the consumer. B. be imposed on those affected by the externality. C. be imposed on the producer. D. None of these statements is true.
Refer to the below table. If the price of X decreases to $2, then the utility-maximizing combination of the two products is:
The table below shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18.
A. 2 of X and 2 of Y
B. 2 of X and 3 of Y
C. 3 of X and 3 of Y
D. 4 of X and 4 of Y