For an individual's supply curve of labor to be backward bending:
a. the substitution effect must be greater than the income effect.
b. the substitution effect must be equal to the income effect.
c. the substitution effect must be less than the income effect.
d. is an impossibility.
c
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How might inflation targeting improve the Fed's monetary policy?
What will be an ideal response?
Chicken and fish are substitutes. Therefore, the cross elasticity of demand between chicken and fish is
A. negative. B. positive. C. zero. D. Any of the above is possible.
To own a taxicab in New York City, you must own a medallion. New York City regulates the number of official cabs by limiting the number of medallions. Explain why the New York cab industry is not competitive by reviewing the four conditions necessary for competition. NYC violates which one?
If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is
a. greater than the quantity demanded and the dollar will appreciate. b. greater than the quantity demanded and the dollar will depreciate. c. less than the quantity demanded and the dollar will appreciate. d. less than the quantity demanded and the dollar will depreciate.