If the income effect of a change in the wage dominates the substitution effect, then workers will want to work more when the wage increases
a. True
b. False
Indicate whether the statement is true or false
False
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When money is used to compare the relative price of a burrito and a taco, money is being used as a
A) medium of exchange. B) store of value. C) measurement of inflation. D) unit of account. E) token of bartering.
Suppose I buy 3 cups of coffee at the price of $1 each. I would have been willing to pay $3 for that marvelous first cup, pay even $2 for the second cup, and $1—the market price —for the third cup. My consumer surplus is
a. $6 b. $5 c. $3 d. $2 e. $1
The federal government placed an upper limit on human organ prices, which is called a
A. Price support. B. Price floor. C. Price ceiling. D. None of the choices are correct.
When economic profits are positive, accounting profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.