If a good is inferior and its price increases,
a. the income effect will be positive and the substitution effect will be positive.
b. the income effect will be negative and the substitution effect will be negative.
c. the income effect will be positive and the substitution effect will be negative.
d. the income effect will be negative and the substitution effect will be positive.
c
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Assuming all else equal, if a firm decides to pay more dividends and lowers the amount of retained earnings it holds, it will cause:
A) an upward movement along the current credit supply curve of the firm. B) a downward movement along the current credit supply curve of the firm. C) the current credit supply curve of the firm to shift to the left. D) the current credit supply curve of the firm to shift to the right.
What determines the position and shape of a society's production possibilities curve?
a. the physical resources of that society b. the level of technology of the society c. the number of factories available to the society d. all of the above
As long as the debt is internally held, there are no problems associated with the government going into debt
Indicate whether the statement is true or false
One likely result of a price ceiling is that:
A. a surplus of product would result. B. the price charged in the market would be above the equilibrium price. C. the price charged in the market would be the equilibrium price. D. the available product must be rationed.