By itself, the substitution effect of an increase in the wage rate will
a. always lead to an increase in the quantity of labor supplied
b. always lead to a decrease in the quantity of labor supplied
c. lead to an increase in the quantity of labor supplied only if leisure is like a normal good
d. lead to an increase in the quantity of labor supplied only if leisure is not a normal good
e. lead to an increase in the quantity of labor supplied only if the income effect works in the same direction
A
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If Project A has a cost of $2, and provides a benefit of $3, and Project B has a cost of $ 5 and provides a benefit of $8, which of the following statements is true?
A) The net benefit of Project A is $5. B) An individual can optimize by choosing Project B. C) Project A has a higher net benefit than Project B. D) A shift from Project A to Project B increases the net benefit by $1.
In an economy open to international trade where the interest rate at which saving and investment would be equal is ________ the world real interest rate ________
A) above; a trade surplus ensues B) below; a trade deficit ensues C) above; there is a net capital outflow D) below; there is a net capital inflow E) none of the above
Deficiency payments are part of a federal program to assist
a. farmers. b. senior citizens. c. consumers. d. college students.
Contractionary fiscal policy ... aggregate demand and in the short run ... real GDP
What will be an ideal response?