Fill in the blanks. For an inferior good, the income effect is _________, and the substitution effect is _______.
a. positive; positive
b. positive; negative
c. negative; positive
d. negative; negative.
b. positive; negative
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Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
Refer to the data in Figure 22.1. The price of this good
A. Is $1 per unit. B. Is $50 per unit. C. Is $100 per unit. D. Varies as output changes.
According to the life cycle model discussed in the textbook, people tend to borrow while young, pay off debt and build wealth in their middle age, and live off savings during their retirement.
Answer the following statement true (T) or false (F)
In 2015, the unemployment rate among workers with a bachelor's degree or higher was
A. 8.0 percent. B. 5.4 percent. C. 2.1 percent. D. 2.6 percent.