Statistical studies in the United States have reached the conclusion that for low-income workers
a. the substitution effect is greater than the income effect.
b. the income effect is greater than the substitution effect.
c. the income effect is about equal to the substitution effect.
d. the substitution effect is of the "wrong" sign.
a
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Refer to the scenario above. Which of the following combinations lie below Jack's production possibilities curve?
A) 10 paintings and 6 sculptures B) 5 paintings and 1 sculpture C) 10 paintings only D) 10 sculptures only
Which of the following CANNOT be a source of comparative advantage?
A) Climate B) Resource stock available C) Education of workforce D) Domestic prices of goods and services
If the structural stagnation hypothesis is true, what happened to the economy in the early 2000s that made it prone to a financial crisis?
A. Too-expansionary supply-side policies B. Increased trade restrictions C. Too-expansionary demand-side policies D. Slowing technological advance
Involuntary unemployment
A. exists when there is a shortage of labor. B. exists when there is an excess quantity of labor supplied. C. will increase as the wage rate falls. D. occurs when the wage rate is below the equilibrium wage rate.