If the substitution effect is always greater than the income effect, then an individual's labor supply curve will
a. bend backward
b. always have a positive slope
c. always have a negative slope
d. be vertical
e. be horizontal
B
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The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:
a. traditional economies. b. command economies. c. market economies. d. decentralized economies.
The federal budget deficit acts as an automatic stabilizer because
A) government tax revenues decrease during a recession. B) unemployment insurance payments decrease during a recession. C) food stamp payments increase during expansionary periods. D) Medicaid payments increase during expansionary periods.
Which economist argued that high tax rates can produce less tax revenues?
a. Robert Ferber b. A. W. Phillips c. Alex Maxwell d. Frantisek Bass e. Arthur Laffer
When Alison, a college math professor, leaves her job at a small rural college and starts looking for a job at a large urban university, she is _____.
(A) Frictionally unemployed (B) Structurally unemployed (C) A discouraged worker (D) Cyclically unemployed