According to the income effect, when the price of automobiles rises, people buy fewer automobiles because:
a. they substitute other forms of transportation for driving.
b. the nominal amount of their paychecks is smaller.
c. the purchasing power of their income is reduced.
d. their demand for automobiles is very elastic.
c
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What is the difference between club goods and common pool resources? Cite one example of each type of good
What will be an ideal response?
The marginal rate of substitution is ________, the ________ is the ________
A) greater; flatter; indifference curve B) greater; steeper; budget line C) smaller; steeper; indifference curve D) smaller; flatter; indifference curve
In order for an economy to shift its production possibilities curve rightward, it must:
a. suffer resource unemployment. b. experience an increase in its resources and/or an improvement in its technology. c. use its resources more efficiently than at points along the curve. d. all of these.
The Federal Reserve System began operations in
A) 1834. B) 1896. C) 1914. D) 1935.