According to the theory of efficiency wages, firms operate more efficiently if wages are below the equilibrium level
a. True
b. False
Indicate whether the statement is true or false
False
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Mobile source standards in the U.S. are solely benefit-based, which means they are set
a. to achieve allocative efficiency b. to maximize total social benefits c. at the point where MSB is maximized d. at the abatement level where MSC is zero e. none of the above
If the supply of iPods increases, then
i. the supply curve for iPods has shifted rightward. ii. the price of iPods has decreased. iii. there will be a movement upward along the iPod supply curve. A) i only B) i, ii and iii C) i and ii D) ii and iii E) i and iii
GDP per capita provides a reasonably accurate measurement of a country's income distribution
a. True b. False Indicate whether the statement is true or false
Which of the following is the definition of autonomous consumption spending?
a. The effect of a change in wealth on consumption spending b. The part of consumption spending that is independent of disposable income c. The impact of disposable income on consumption spending d. The part of consumption spending that is independent of wealth e. The horizontal intercept of the consumption function