The substitution effect shows that when the wage rate increases
a. an additional hour of labor is not worth pursuing.
b. an additional hour of leisure is now less costly in terms of foregone consumption.
c. an additional hour of leisure is now more expensive in terms of foregone consumption.
d. there will be intertemporal substitution.
c. an additional hour of leisure is now more expensive in terms of foregone consumption.
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If a firm is practicing third-degree price discrimination and is charging a price of $8 per unit to consumers in Group A and a price of $10 to consumers in Group B, which of the following is true?
A) Group B consumers have a greater price elasticity than Group A consumers. B) Group A consumers have a lower price elasticity than Group B consumers. C) Group A consumers have a greater price elasticity than Group B consumers. D) Group A consumers are less responsive to price changes than Group B consumers.
Because the benefits of basic research are obvious and easy to measure, it is likely that the public sector pays for the right amount and the right kinds of basic research
a. True b. False Indicate whether the statement is true or false
Economists use the terms resource and input as synonyms
Indicate whether the statement is true or false
Suppose an economy produces only three products, A, B, and C. Quantity purchased and changes in the prices of these items over a period are shown below:??Average Price Per UnitProductQuantityYear 1Year 2A10$10$8B152022C85055Using year 1 as a base, the value of the country's nominal GDP in year 1:
A. cannot be determined with the information given. B. is $3,270. C. is $850. D. is $800.