Consider two lottery winners, Tino who is 65 years old and Sasha who is 32 years old. Which of these two would be expected to have the larger income effect, all else equal?
A) Sasha
B) Tino
C) Both would have no income effect.
D) Both would have equal income effects.
B
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Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest. What happens in the California wine market as a result of this announcement?
A) The demand curve for California wine shifts to the right in anticipation of higher prices in the future. B) The demand curve for California wine shifts to the left in anticipation of higher prices in the future. C) The supply curve for California wine shifts to the left in anticipation of lower quantities in the future. D) The supply curve for California wine shifts to the right in anticipation of higher prices in the future.
Money is neutral in the model economy we discussed because
A) the money supply is exogenous. B) the money supply is intertemporal. C) prices are fully flexible. D) it is a barter economy.
Under the Graduation Act (1854), land prices for the public domain
a. were subject to a schedule that reflected reduced prices for land that remained unsettled over time. b. were subject to a schedule that reflected reduced prices for native-born Americans and higher prices for immigrants. c. were increased to $1.25 per acre in cash. d. were increased to reflect inflation.
"The Consumer Price Index increased by 4.2 percent in the first quarter of this year." What type of statement is this?
a. normative b. negative c. positive d. subjective e. biased