As your wage increases, the ________ effect causes you to work more, but the ________ effect causes you to work less and demand more leisure
a. substitution; income
b. income; substitution
c. work; leisure
d. leisure; work
a
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Suppose the government imposes a 30-cent tax on the sellers of soft drinks. Which of the following is not correct? The tax would
a. shift the supply curve upward by 30 cents. b. raise the equilibrium price by 30 cents. c. reduce the equilibrium quantity. d. discourage market activity.
The main criticism Joseph Stiglitz levels at the IMF is that
A. it provides too many loans that are not repaid. B. it no longer promotes economic growth, but rather contraction. C. it does not provide enough loans. D. it does not sufficiently promote the market system.
When a country engages in international specialization, it focuses on producing which of the following?
A) goods with the highest opportunity cost. B) goods with the lowest opportunity costs. C) goods for which production takes fewer worker-hour than another country. D) goods for which production costs are more than average total costs.
The production possibilities curve bows out because
A. of the law of increasing additional cost. B. resources are not being fully utilized. C. production is efficient. D. production is inefficient.