Figure 34.2 illustrates two labor supply curves. If in-kind payments become readily available in this economy and marginal tax rates increase significantly, we would expect a shift from

A. S2 to S1 and a movement down S1.
B. S2 to S1 only.
C. S1 to S2 only.
D. S2 to S1 and a movement up S1.


Answer: A

Economics

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If consumer tastes are changing more in favor of the consumption of a particular good the:

A. market demand curve will shift to the left. B. consumer will move up a given demand curve, decreasing the quantity demanded. C. maket demand curve would shift to the right. D. consumer would move down a given demand curve, increasing the quantity demanded.

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measure of the price level that includes prices of the final goods and services included in GDP

What will be an ideal response?

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Assume that in Scandia, planned investment is $80 billion but actual investment is $60 billion. Unplanned inventory investment is

A. -$20 billion. B. -$10 billion. C. $70 billion. D. $140 billion.

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Scarcity means that there is less of a good or resource available than people wish to have

a. True b. False Indicate whether the statement is true or false

Economics