The substitution effect can be defined as:
A. the change in consumption that results from a change in the relative price of goods.
B. the change in consumption that results from increased effective wealth due to lower prices.
C. the change in consumption that results from increased effective wealth due to getting a raise.
D. the change in income that results from increased effective consumption due to lower prices
A. the change in consumption that results from a change in the relative price of goods.
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Suppose a bank has assets of $500 million and capital of $100 million. Its return on assets is -3%. What is its leverage ratio? What is its return on equity?
What will be an ideal response?
Economic theory suggests that the standard of living of American workers would rise if
a. the minimum wage were doubled. b. automation were outlawed. c. workers were forced to retire earlier. d. technological improvements increased output per worker-hour.
Which U.S. government agency determines the magnitude of antidumping duties?
a. the U.S. International Trade Commission b. the Office of the Special Trade Representative c. the International Monetary Fund d. the Department of Commerce
Which of the following nations has a total fertility rate that would suggest that its next generation will only be half the size of the current generation?
A. Hong Kong. B. Australia. C. Sweden. D. All of these nations.