The substitution effect of a wage decrease examines the effect of the decrease in wage income on a worker's ability to consume goods and services
Indicate whether the statement is true or false
FALSE
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One reason why soda companies are so fervently against this tax might be because they assume sellers will pay the entire tax. Sellers will pay the entire tax if
A) demand is perfectly inelastic. B) the price elasticity of demand is between zero and 1. C) demand is unit elastic. D) demand is perfectly elastic.
Lynn owns Dust Bunnies, a cleaning company. In one week, she is able to clean 9 houses. If she hires an employee, together they are able to clean 15 houses per week
If Lynn charges $100 to clean a house, and she pays her employee $400 a week, should she hire this employee? A) Yes, because the value of marginal product of the worker is less than the wage. B) Yes, because the value of marginal product of the worker is greater than the wage. C) No, because the value of marginal product of the worker is greater than the wage. D) No, because the value of marginal product of the worker is less than the wage.
Which principle states that as the production of one good expands, the opportunity cost of producing another unit of this good generally increases?
a. Principle of total cost b. Principle of increasing cost c. Principle of opportunity cost d. Principle of increasing marginal utility
Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
Refer to the data above. Which of the following is true?
A. For the West region, the cost of 5 units of clothing is 10 units of food
B. For the West region, the cost of 15 units of food is 5 units of clothing
C. For the East region, the cost of 8 units of food is 8 units of clothing
D. For the East region, the cost of 4 units of clothing is 6 units of food