A tax that reduces economic efficiency is always bad policy
a. True
b. False
Indicate whether the statement is true or false
False
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The demand curve for canned peas is downward sloping. If the price of canned peas, an inferior good, rises, then
A) the income effect which causes you to reduce your canned peas purchases is smaller than the substitution effect which causes you to increase your purchases, resulting in a net increase in quantity demanded. B) the income and substitution effects offset each other but the price effect of an inferior good leads you to buy more canned peas. C) both the income and substitution effects reinforce each other to decrease the quantity demanded. D) the income effect which causes you to increase your canned peas purchases is smaller than the substitution effect which causes you to reduce your purchases, resulting in a net decrease in quantity demanded.
Publishers practice price discrimination when they sell books at high prices to
A) early adopters. B) online book sellers. C) large chain bookstores. D) local bookstores.
According to the H-S definition of income, employer contributions are excluded from money income.
A. True B. False C. Uncertain
____ is the subjective measure of the physical and mental satisfaction that is anticipated from consumption
a. Demand b. Supply c. Recognition d. Utility e. Cognition