Assume leisure is a normal good. The substitution effect of a wage decrease implies a ________ demand for leisure and a ________ labor supply.
A. higher; higher
B. higher; lower
C. lower; lower
D. lower; higher
Answer: B
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The fact that rubies are more expensive than milk reflects the fact that for most consumers
A) the total utility from rubies exceeds that from milk. B) the marginal utility from rubies equals that from milk. C) more milk is consumed than rubies. D) a quart of rubies is considered to be prettier than a quart of milk.
________ and ________ may provide an explanation for stock market bubbles
A) Overconfidence; social contagion B) Underconfidence; social contagion C) Overconfidence; social isolationism D) Underconfidence; social isolationism
Ad valorem taxation
A) refers to the personal income tax. B) is used to tax goods but not services. C) is assessed by charging a tax rate as a fraction of the market price of a good. D) is a tax that is applied only to cigarettes and alcohol.
The criterion introduced by the Supreme Court in 1911 to determine whether a particular action was illegal or legal within the terms of the ________ is called the Rule of Reason.
A. Clayton Act B. Sherman Antitrust Act C. The Humphrey-Hawkins Act D. Federal Trade Commission Act