Which of the following occurs simultaneously with an income effect?

A. substitution effect
B. preferences effect
C. backward-bending supply curve
D. Giffen good effect


Answer: A. substitution effect

Economics

You might also like to view...

When aggregate expenditure is given as Y= 600 + 0.5Y, short-run equilibrium output equals:

A. 800. B. 600. C. 400. D. 1,200.

Economics

The federal law that prohibits, among other things, price discrimination that lessens competition, the use of tie-in sales, and mergers between firms that reduce competition is the:

A) Sherman Act of 1890. B) Clayton Act of 1914. C) Federal Trade Commission Act of 1914. D) Celler-Kefauver Act of 1950.

Economics

The misperceptions theory was originally proposed by ________ and rigorously formulated by ________

A) Milton Friedman; Robert Lucas B) John Maynard Keynes; Robert Solow C) Edward Prescott; Robert King D) James Tobin; Greg Mankiw

Economics

The percentage of elementary and secondary educational expenditures financed by the federal government _____ between 1940 and 2000

a. increased from 5 to 10 percent b. increased from 2 to 7 percent c. stayed relatively constant around 5 percent d. increased from 3 to 13 percent

Economics