Biscuits are an inferior good for Aster, then if their price falls, she
a. will definitely buy more biscuits
b. will definitely buy fewer biscuits
c. may buy more biscuits
d. will buy fewer biscuits if the substitution effect is larger than the income effect
e. will buy more biscuits if the substitution effect is larger than the income effect
E
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In general, the __________ the welfare payment, the __________ the incentive to find work.
a. higher, high
b. lower, lower
c. lower, higher
A cartel is
A. a group of oligopolists who try to behave like a single monopolist and split the benefits among themselves. B. a government-approved organization for the exchange of technical information among firms. C. a form of competition among oligopolists. D. a regulated industry that is officially permitted to set the price of its product above long-run average total cost.
In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans:
A. were an example of how the government can act to solve the moral hazard problem. B. reduced statistical discrimination in the home mortgage market. C. prevented Americans from entering into mortgage contracts that they did not understand. D. were so numerous and detailed that borrowers didn't read or understand the information the companies had disclosed.
The short-run aggregate supply curve has a(n) ________ slope because as prices of ________ rise, prices of ________ rise more slowly
A) positive; final goods and services; inputs B) infinite; final goods and services; inputs C) positive; inputs; final goods and services D) infinite; inputs; final goods and services