A Giffen good is one for which the quantity demanded rises as the price rises because the income effect
a. reinforces the substitution effect.
b. reinforces and is greater than the substitution effect.
c. counteracts but is smaller than the substitution effect.
d. counteracts and is greater than the substitution effect.
d
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A local flower grower grows products in a plot of land, which is exceptionally colorful and is admired by many passersby. There is no way to charge for this in the price of the flowers. We can safely conclude that
A. the florist produces too many flowers. B. the florist produces too few flowers. C. the florist produces the right amount of flowers. D. society pays the socially optimal amount for the flowers.
Increasing opportunity cost along a bowed-out production possibilities frontier occurs because
A) of inefficient production. B) of the scarcity of factors of production. C) of ineffective management by entrepreneurs. D) some factors of production are not equally suited to producing both goods or services.
All of the following make the demand for labor more elastic EXCEPT
A) greater elasticity of demand for the final product. B) the longer the time period under consideration. C) the smaller the proportion of total costs accounted for by labor. D) the easier it is to substitute another input for labor.
Contractionary fiscal policy actions will ________ the price of farm commodities
Fill in the blank(s) with correct word