If the substitution effect from a higher wage rate exceeds the income effect, then a higher wage rate
A) increases the quantity of labor supplied.
B) decreases the quantity of labor supplied.
C) shifts the supply of labor curve leftward.
D) shifts the supply of labor curve rightward.
A
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Assume the price of beer is $4, the price of pizza is $10 and the consumer's income is $250. Which consumption bundle will NOT be the consumer's choice?
A) A (5 Beers, 5 Pizzas) B) B (0 Beers, 25 Pizzas) C) C (25 Beers, 15 Pizzas) D) None of the above bundles will be chosen.
If a good has an income elasticity of 1.83, then it:
A. is a normal good, and a necessity. B. is an inferior good, and a necessity. C. probably has a lot of close substitutes available. D. is a luxury.
The objective of a macro environmental analysis is to:
a. Determine the demand for a new product b. Identify the major markets in which a new product might compete c. Determine the optimum price for a new product d. Identify the relevant demand forces, determine their relation, and predict how they might change in the future
Suppose that a tariff is imposed on imported cheese. This will have the effect of __________ the price of cheese, __________ consumers' surplus, and __________ producers' surplus
A) increasing; increasing; increasing B) decreasing; decreasing; decreasing C) increasing; increasing; decreasing D) increasing; decreasing; increasing E) decreasing; decreasing; increasing