The potential for redistribution cannot be exaggerated
Indicate whether the statement is true or false
F
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A professor in your microeconomics lectures derived a labor demand curve in the lecture
Given some reasonable assumptions, she showed that the demand for labor depends negatively on the real wage. You want to put this hypothesis to the test ("show me") and collect data on employment and real wages for a certain industry. You try to estimate the labor demand curve but find no relationship between the two variables. Is economic theory wrong? Explain. What will be an ideal response?
People who hold bonds may tend to consume more out of their income than they should because they think they are wealthier than they really are
Indicate whether the statement is true or false
The quantity demanded in a market depends on many things, but the concept of elasticity focuses on the effect of changes in the price of the good
a. True b. False Indicate whether the statement is true or false
Which of the following statements suggests that a rise in GDP actually understates the rise in the standard of living? a. A much wider variety of basic products, such as food and clothing, is available today than several decades ago. b. Crime rates may rise as the GDP of a society increases
c. Crime rates may rise as the GDP of a society increases. d. Income inequality may increase with increasing GDP.